Correlation Between Blackrock Enhanced and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Blackrock Enhanced and Eaton Vance 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 Blackrock Enhanced and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Enhanced Government and Eaton Vance National, you can compare the effects of market volatilities on Blackrock Enhanced and Eaton Vance 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 Blackrock Enhanced with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Enhanced and Eaton Vance.
Diversification Opportunities for Blackrock Enhanced and Eaton Vance
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackrock and Eaton is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Enhanced Government and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National and Blackrock Enhanced 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 Blackrock Enhanced Government are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance National has no effect on the direction of Blackrock Enhanced i.e., Blackrock Enhanced and Eaton Vance go up and down completely randomly.
Pair Corralation between Blackrock Enhanced and Eaton Vance
Considering the 90-day investment horizon Blackrock Enhanced is expected to generate 1.82 times less return on investment than Eaton Vance. In addition to that, Blackrock Enhanced is 2.92 times more volatile than Eaton Vance National. It trades about 0.03 of its total potential returns per unit of risk. Eaton Vance National is currently generating about 0.15 per unit of volatility. If you would invest 1,645 in Eaton Vance National on October 21, 2024 and sell it today you would earn a total of 26.00 from holding Eaton Vance National or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Enhanced Government vs. Eaton Vance National
Performance |
| Timeline |
| Blackrock Enhanced |
| Eaton Vance National |
Blackrock Enhanced and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Enhanced and Eaton Vance
The main advantage of trading using opposite Blackrock Enhanced and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Enhanced position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.The idea behind Blackrock Enhanced Government and Eaton Vance National pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Federated Premier Municipal |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |