Correlation Between Eaton Vance and Fisher Investments
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Fisher Investments 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 Fisher Investments 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 Fisher Small Cap, you can compare the effects of market volatilities on Eaton Vance and Fisher Investments 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 Fisher Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Fisher Investments.
Diversification Opportunities for Eaton Vance and Fisher Investments
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and Fisher is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Short and Fisher Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Investments 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Investments has no effect on the direction of Eaton Vance i.e., Eaton Vance and Fisher Investments go up and down completely randomly.
Pair Corralation between Eaton Vance and Fisher Investments
Assuming the 90 days horizon Eaton Vance is expected to generate 35.4 times less return on investment than Fisher Investments. But when comparing it to its historical volatility, Eaton Vance Short is 8.23 times less risky than Fisher Investments. It trades about 0.06 of its potential returns per unit of risk. Fisher Small Cap is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,225 in Fisher Small Cap on August 30, 2024 and sell it today you would earn a total of 125.00 from holding Fisher Small Cap or generate 10.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Short vs. Fisher Small Cap
Performance |
| Timeline |
| Eaton Vance Short |
| Fisher Investments |
Eaton Vance and Fisher Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Fisher Investments
The main advantage of trading using opposite Eaton Vance and Fisher Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Fisher Investments 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 Fisher Investments will offset losses from the drop in Fisher Investments' long position.| Eaton Vance vs. Fisher Small Cap | Eaton Vance vs. Kinetics Small Cap | Eaton Vance vs. Ab Small Cap | Eaton Vance vs. Touchstone Small Cap |
| Fisher Investments vs. Fisher All Foreign | Fisher Investments vs. Fisher Stock | Fisher Investments vs. Fisher Fixed Income | Fisher Investments vs. Fisher Esg Fixed |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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