Correlation Between Eaton Vance and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Eaton Vance 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 Eaton Vance 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 Eaton Vance Special, you can compare the effects of market volatilities on Eaton Vance and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Eaton Vance.
Diversification Opportunities for Eaton Vance and Eaton Vance
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eaton and Eaton is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating Rate and Eaton Vance Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Special 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Special has no effect on the direction of Eaton Vance i.e., Eaton Vance and Eaton Vance go up and down completely randomly.
Pair Corralation between Eaton Vance and Eaton Vance
If you would invest 825.00 in Eaton Vance Floating Rate on August 31, 2024 and sell it today you would earn a total of 6.00 from holding Eaton Vance Floating Rate or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Eaton Vance Floating Rate vs. Eaton Vance Special
Performance |
| Timeline |
| Eaton Vance Floating |
| Eaton Vance Special |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Eaton Vance
The main advantage of trading using opposite Eaton Vance and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.The idea behind Eaton Vance Floating Rate and Eaton Vance Special pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Eaton Vance vs. Strategic Allocation Aggressive | Eaton Vance vs. Needham Aggressive Growth | Eaton Vance vs. Franklin High Income | Eaton Vance vs. Metropolitan West High |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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