Correlation Between Eaton Vance and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Balanced Fund 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 Balanced Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Large Cap and Balanced Fund Investor, you can compare the effects of market volatilities on Eaton Vance and Balanced Fund 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 Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Balanced Fund.
Diversification Opportunities for Eaton Vance and Balanced Fund
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Balanced is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Large Cap and Balanced Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Investor 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 Large Cap are associated (or correlated) with Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Investor has no effect on the direction of Eaton Vance i.e., Eaton Vance and Balanced Fund go up and down completely randomly.
Pair Corralation between Eaton Vance and Balanced Fund
Assuming the 90 days horizon Eaton Vance Large Cap is expected to generate 1.73 times more return on investment than Balanced Fund. However, Eaton Vance is 1.73 times more volatile than Balanced Fund Investor. It trades about 0.33 of its potential returns per unit of risk. Balanced Fund Investor is currently generating about 0.39 per unit of risk. If you would invest 2,658 in Eaton Vance Large Cap on September 4, 2024 and sell it today you would earn a total of 153.00 from holding Eaton Vance Large Cap or generate 5.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Eaton Vance Large Cap vs. Balanced Fund Investor
Performance |
| Timeline |
| Eaton Vance Large |
| Balanced Fund Investor |
Eaton Vance and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Balanced Fund
The main advantage of trading using opposite Eaton Vance and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund's long position.| Eaton Vance vs. Balanced Fund Investor | Eaton Vance vs. Commodities Strategy Fund | Eaton Vance vs. T Rowe Price | Eaton Vance vs. Commonwealth Global Fund |
| Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |