Correlation Between Eaton Vance and Fiera Capital
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Fiera Capital 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 Fiera Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Senior and Fiera Capital, you can compare the effects of market volatilities on Eaton Vance and Fiera Capital 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 Fiera Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Fiera Capital.
Diversification Opportunities for Eaton Vance and Fiera Capital
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Fiera is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Fiera Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiera Capital 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 Senior are associated (or correlated) with Fiera Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiera Capital has no effect on the direction of Eaton Vance i.e., Eaton Vance and Fiera Capital go up and down completely randomly.
Pair Corralation between Eaton Vance and Fiera Capital
Considering the 90-day investment horizon Eaton Vance is expected to generate 9.18 times less return on investment than Fiera Capital. But when comparing it to its historical volatility, Eaton Vance Senior is 17.09 times less risky than Fiera Capital. It trades about 0.11 of its potential returns per unit of risk. Fiera Capital is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 700.00 in Fiera Capital on September 4, 2024 and sell it today you would lose (2.00) from holding Fiera Capital or give up 0.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 76.36% |
| Values | Daily Returns |
Eaton Vance Senior vs. Fiera Capital
Performance |
| Timeline |
| Eaton Vance Senior |
| Fiera Capital |
Eaton Vance and Fiera Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Fiera Capital
The main advantage of trading using opposite Eaton Vance and Fiera Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Fiera Capital 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 Fiera Capital will offset losses from the drop in Fiera Capital's long position.| Eaton Vance vs. Visa Class A | Eaton Vance vs. Diamond Hill Investment | Eaton Vance vs. Associated Capital Group | Eaton Vance vs. Brookfield Corp |
| Fiera Capital vs. Western Asset Global | Fiera Capital vs. Invesco Trust For | Fiera Capital vs. Logan Ridge Finance | Fiera Capital vs. Invesco Advantage MIT |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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