Correlation Between Eaton Vance and City National
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and City National 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 City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Short and City National Rochdale, you can compare the effects of market volatilities on Eaton Vance and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and City National.
Diversification Opportunities for Eaton Vance and City National
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and City is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Short and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 Short are associated (or correlated) with City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Eaton Vance i.e., Eaton Vance and City National go up and down completely randomly.
Pair Corralation between Eaton Vance and City National
If you would invest 719.00 in Eaton Vance Short on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Eaton Vance Short or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Eaton Vance Short vs. City National Rochdale
Performance |
| Timeline |
| Eaton Vance Short |
| City National Rochdale |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and City National
The main advantage of trading using opposite Eaton Vance and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, City National 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 City National will offset losses from the drop in City National's long position.| Eaton Vance vs. Vanguard Short Term Treasury | Eaton Vance vs. Vanguard Short Term Treasury | Eaton Vance vs. Vanguard Short Term Federal | Eaton Vance vs. Vanguard Short Term Government |
| City National vs. Qs Large Cap | City National vs. Nationwide Global Equity | City National vs. Growth Strategy Fund | City National vs. Issachar Fund Class |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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