Correlation Between Eaton Vance and Pro-blend(r) Moderate
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Pro-blend(r) Moderate 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 Pro-blend(r) Moderate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Floating Rate and Pro Blend Moderate Term, you can compare the effects of market volatilities on Eaton Vance and Pro-blend(r) Moderate 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 Pro-blend(r) Moderate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Pro-blend(r) Moderate.
Diversification Opportunities for Eaton Vance and Pro-blend(r) Moderate
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Pro-blend(r) is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating Rate and Pro Blend Moderate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pro-blend(r) Moderate 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 Floating Rate are associated (or correlated) with Pro-blend(r) Moderate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pro-blend(r) Moderate has no effect on the direction of Eaton Vance i.e., Eaton Vance and Pro-blend(r) Moderate go up and down completely randomly.
Pair Corralation between Eaton Vance and Pro-blend(r) Moderate
Assuming the 90 days horizon Eaton Vance is expected to generate 5.49 times less return on investment than Pro-blend(r) Moderate. But when comparing it to its historical volatility, Eaton Vance Floating Rate is 6.57 times less risky than Pro-blend(r) Moderate. It trades about 0.24 of its potential returns per unit of risk. Pro Blend Moderate Term is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,469 in Pro Blend Moderate Term on September 1, 2024 and sell it today you would earn a total of 23.00 from holding Pro Blend Moderate Term or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eaton Vance Floating Rate vs. Pro Blend Moderate Term
Performance |
| Timeline |
| Eaton Vance Floating |
| Pro-blend(r) Moderate |
Eaton Vance and Pro-blend(r) Moderate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Pro-blend(r) Moderate
The main advantage of trading using opposite Eaton Vance and Pro-blend(r) Moderate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Pro-blend(r) Moderate 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 Pro-blend(r) Moderate will offset losses from the drop in Pro-blend(r) Moderate's long position.| Eaton Vance vs. Pro Blend Moderate Term | Eaton Vance vs. Dimensional Retirement Income | Eaton Vance vs. Lifestyle Ii Moderate | Eaton Vance vs. Wisdomtree Siegel Moderate |
| Pro-blend(r) Moderate vs. Pro Blend Servative Term | Pro-blend(r) Moderate vs. Pro Blend Extended Term | Pro-blend(r) Moderate vs. Pro Blend Maximum Term | Pro-blend(r) Moderate vs. Greenspring Fund Retail |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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