Correlation Between Eaton Vance and Putnam Premier
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Putnam Premier 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 Putnam Premier 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 Putnam Premier Income, you can compare the effects of market volatilities on Eaton Vance and Putnam Premier 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 Putnam Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Putnam Premier.
Diversification Opportunities for Eaton Vance and Putnam Premier
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Putnam is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Putnam Premier Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam Premier Income 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 Putnam Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam Premier Income has no effect on the direction of Eaton Vance i.e., Eaton Vance and Putnam Premier go up and down completely randomly.
Pair Corralation between Eaton Vance and Putnam Premier
Considering the 90-day investment horizon Eaton Vance Senior is expected to under-perform the Putnam Premier. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance Senior is 1.16 times less risky than Putnam Premier. The stock trades about -0.1 of its potential returns per unit of risk. The Putnam Premier Income is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 355.00 in Putnam Premier Income on November 29, 2024 and sell it today you would earn a total of 3.00 from holding Putnam Premier Income or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Putnam Premier Income
Performance |
| Timeline |
| Eaton Vance Senior |
| Putnam Premier Income |
Eaton Vance and Putnam Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Putnam Premier
The main advantage of trading using opposite Eaton Vance and Putnam Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Putnam Premier 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 Putnam Premier will offset losses from the drop in Putnam Premier's long position.| Eaton Vance vs. Blackrock Floating Rate | Eaton Vance vs. Pioneer Floating Rate | Eaton Vance vs. Eaton Vance Senior | Eaton Vance vs. Blackrock Debt Strategies |
| Putnam Premier vs. MFS High Yield | Putnam Premier vs. MFS High Income | Putnam Premier vs. Blackrock Muniholdings Quality | Putnam Premier vs. MFS Charter Income |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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