Correlation Between Eaton Vance and Amg River
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Amg River 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 Amg River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Floating Rate and Amg River Road, you can compare the effects of market volatilities on Eaton Vance and Amg River 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 Amg River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Amg River.
Diversification Opportunities for Eaton Vance and Amg River
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Amg is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating Rate and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road 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 Rate are associated (or correlated) with Amg River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Eaton Vance i.e., Eaton Vance and Amg River go up and down completely randomly.
Pair Corralation between Eaton Vance and Amg River
Assuming the 90 days horizon Eaton Vance is expected to generate 12.35 times less return on investment than Amg River. But when comparing it to its historical volatility, Eaton Vance Floating Rate is 8.96 times less risky than Amg River. It trades about 0.27 of its potential returns per unit of risk. Amg River Road is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,017 in Amg River Road on August 31, 2024 and sell it today you would earn a total of 104.00 from holding Amg River Road or generate 10.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Floating Rate vs. Amg River Road
Performance |
| Timeline |
| Eaton Vance Floating |
| Amg River Road |
Eaton Vance and Amg River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Amg River
The main advantage of trading using opposite Eaton Vance and Amg River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Amg River 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 Amg River will offset losses from the drop in Amg River's long position.| Eaton Vance vs. Amg River Road | Eaton Vance vs. Victory Rs Partners | Eaton Vance vs. Mid Cap Value Profund | Eaton Vance vs. Ab Discovery Value |
| Amg River vs. Amg River Road | Amg River vs. Champlain Small Pany | Amg River vs. Amg River Road | Amg River vs. Marsico Global Fund |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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