Correlation Between Eaton Vance and Blackrock Enhanced
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Blackrock Enhanced 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 Blackrock Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Floating and Blackrock Enhanced Capital, you can compare the effects of market volatilities on Eaton Vance and Blackrock Enhanced 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 Blackrock Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Blackrock Enhanced.
Diversification Opportunities for Eaton Vance and Blackrock Enhanced
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Blackrock is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating and Blackrock Enhanced Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Enhanced 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 are associated (or correlated) with Blackrock Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Enhanced has no effect on the direction of Eaton Vance i.e., Eaton Vance and Blackrock Enhanced go up and down completely randomly.
Pair Corralation between Eaton Vance and Blackrock Enhanced
Considering the 90-day investment horizon Eaton Vance is expected to generate 1.01 times less return on investment than Blackrock Enhanced. But when comparing it to its historical volatility, Eaton Vance Floating is 1.27 times less risky than Blackrock Enhanced. It trades about 0.18 of its potential returns per unit of risk. Blackrock Enhanced Capital is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,904 in Blackrock Enhanced Capital on August 31, 2024 and sell it today you would earn a total of 96.00 from holding Blackrock Enhanced Capital or generate 5.04% 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 vs. Blackrock Enhanced Capital
Performance |
| Timeline |
| Eaton Vance Floating |
| Blackrock Enhanced |
Eaton Vance and Blackrock Enhanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Blackrock Enhanced
The main advantage of trading using opposite Eaton Vance and Blackrock Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Blackrock Enhanced 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 Blackrock Enhanced will offset losses from the drop in Blackrock Enhanced's long position.| Eaton Vance vs. NXG NextGen Infrastructure | Eaton Vance vs. GAMCO Natural Resources | Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Calamos Global Dynamic |
| Blackrock Enhanced vs. Blackrock Resources Commodities | Blackrock Enhanced vs. Blackrock International Growth | Blackrock Enhanced vs. BlackRock Global Opportunities | Blackrock Enhanced vs. Eaton Vance Tax |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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