Correlation Between Eaton Vance and Calvert Equity
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Calvert Equity at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eaton Vance and Calvert Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Atlanta and Calvert Equity Portfolio, you can compare the effects of market volatilities on Eaton Vance and Calvert Equity and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Eaton Vance with a short position of Calvert Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Calvert Equity.
Diversification Opportunities for Eaton Vance and Calvert Equity
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Calvert is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Atlanta and Calvert Equity Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Equity Portfolio and Eaton Vance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Eaton Vance Atlanta are associated (or correlated) with Calvert Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Equity Portfolio has no effect on the direction of Eaton Vance i.e., Eaton Vance and Calvert Equity go up and down completely randomly.
Pair Corralation between Eaton Vance and Calvert Equity
Assuming the 90 days horizon Eaton Vance Atlanta is expected to generate 1.46 times more return on investment than Calvert Equity. However, Eaton Vance is 1.46 times more volatile than Calvert Equity Portfolio. It trades about 0.2 of its potential returns per unit of risk. Calvert Equity Portfolio is currently generating about 0.17 per unit of risk. If you would invest 3,714 in Eaton Vance Atlanta on August 30, 2024 and sell it today you would earn a total of 168.00 from holding Eaton Vance Atlanta or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Atlanta vs. Calvert Equity Portfolio
Performance |
| Timeline |
| Eaton Vance Atlanta |
| Calvert Equity Portfolio |
Eaton Vance and Calvert Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Calvert Equity
The main advantage of trading using opposite Eaton Vance and Calvert Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Calvert Equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Calvert Equity will offset losses from the drop in Calvert Equity's long position.| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
| Calvert Equity vs. Calvert Bond Portfolio | Calvert Equity vs. Calvert International Equity | Calvert Equity vs. Calvert Capital Accumulation | Calvert Equity vs. Calvert Balanced Portfolio |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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