Correlation Between Eic Value and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Eic Value 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 Eic Value and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and Eaton Vance Floating Rate, you can compare the effects of market volatilities on Eic Value 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 Eic Value with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Eaton Vance.
Diversification Opportunities for Eic Value and Eaton Vance
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eic and Eaton is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating and Eic Value 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 Eic Value Fund 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 Floating has no effect on the direction of Eic Value i.e., Eic Value and Eaton Vance go up and down completely randomly.
Pair Corralation between Eic Value and Eaton Vance
Assuming the 90 days horizon Eic Value Fund is expected to under-perform the Eaton Vance. In addition to that, Eic Value is 6.48 times more volatile than Eaton Vance Floating Rate. It trades about -0.08 of its total potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.15 per unit of volatility. If you would invest 983.00 in Eaton Vance Floating Rate on November 27, 2024 and sell it today you would earn a total of 15.00 from holding Eaton Vance Floating Rate or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Eic Value Fund |
| Eaton Vance Floating |
Eic Value and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and Eaton Vance
The main advantage of trading using opposite Eic Value and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value 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.| Eic Value vs. Prudential California Muni | Eic Value vs. Us Government Securities | Eic Value vs. John Hancock Government | Eic Value vs. Vanguard Intermediate Term Government |
| Eaton Vance vs. Eaton Vance Worldwide | Eaton Vance vs. Live Oak Health | Eaton Vance vs. Deutsche Health And | Eaton Vance vs. Tekla Healthcare Investors |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |