Correlation Between Eaton Vance and Jpmorgan High
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Jpmorgan High 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 Jpmorgan High 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 Jpmorgan High Yield, you can compare the effects of market volatilities on Eaton Vance and Jpmorgan High 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 Jpmorgan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Jpmorgan High.
Diversification Opportunities for Eaton Vance and Jpmorgan High
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Jpmorgan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating Rate and Jpmorgan High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan High Yield 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 Jpmorgan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan High Yield has no effect on the direction of Eaton Vance i.e., Eaton Vance and Jpmorgan High go up and down completely randomly.
Pair Corralation between Eaton Vance and Jpmorgan High
Assuming the 90 days horizon Eaton Vance is expected to generate 3.81 times less return on investment than Jpmorgan High. But when comparing it to its historical volatility, Eaton Vance Floating Rate is 3.03 times less risky than Jpmorgan High. It trades about 0.1 of its potential returns per unit of risk. Jpmorgan High Yield is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 661.00 in Jpmorgan High Yield on September 13, 2024 and sell it today you would earn a total of 3.00 from holding Jpmorgan High Yield or generate 0.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Floating Rate vs. Jpmorgan High Yield
Performance |
| Timeline |
| Eaton Vance Floating |
| Jpmorgan High Yield |
Eaton Vance and Jpmorgan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Jpmorgan High
The main advantage of trading using opposite Eaton Vance and Jpmorgan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Jpmorgan High 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 Jpmorgan High will offset losses from the drop in Jpmorgan High'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 |
| Jpmorgan High vs. Boston Partners Longshort | Jpmorgan High vs. Angel Oak Ultrashort | Jpmorgan High vs. Franklin Federal Limited Term | Jpmorgan High vs. Cmg Ultra Short |
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 Stocks Directory module to find actively traded stocks across global markets.
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