Correlation Between Eaton Vance and Small-cap Value
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Small-cap Value 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 Small-cap Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Large Cap and Small Cap Value Fund, you can compare the effects of market volatilities on Eaton Vance and Small-cap Value 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 Small-cap Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Small-cap Value.
Diversification Opportunities for Eaton Vance and Small-cap Value
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eaton and Small-cap is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Large Cap and Small Cap Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Value 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 Large Cap are associated (or correlated) with Small-cap Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Value has no effect on the direction of Eaton Vance i.e., Eaton Vance and Small-cap Value go up and down completely randomly.
Pair Corralation between Eaton Vance and Small-cap Value
Assuming the 90 days horizon Eaton Vance Large Cap is expected to generate 0.54 times more return on investment than Small-cap Value. However, Eaton Vance Large Cap is 1.87 times less risky than Small-cap Value. It trades about -0.2 of its potential returns per unit of risk. Small Cap Value Fund is currently generating about -0.44 per unit of risk. If you would invest 2,661 in Eaton Vance Large Cap on October 11, 2024 and sell it today you would lose (88.00) from holding Eaton Vance Large Cap or give up 3.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Large Cap vs. Small Cap Value Fund
Performance |
| Timeline |
| Eaton Vance Large |
| Small Cap Value |
Eaton Vance and Small-cap Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Small-cap Value
The main advantage of trading using opposite Eaton Vance and Small-cap Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Small-cap Value 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 Small-cap Value will offset losses from the drop in Small-cap Value's long position.| Eaton Vance vs. Small Cap Value Fund | Eaton Vance vs. Mutual Of America | Eaton Vance vs. Lsv Small Cap | Eaton Vance vs. Heartland Value Plus |
| Small-cap Value vs. Principal Fds Money | Small-cap Value vs. Fidelity Government Money | Small-cap Value vs. Hewitt Money Market | Small-cap Value vs. Franklin Government Money |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |