Correlation Between Eaton Vance and Jpmorgan Equity
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Jpmorgan Equity 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 Jpmorgan Equity 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 Jpmorgan Equity Fund, you can compare the effects of market volatilities on Eaton Vance and Jpmorgan Equity 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 Jpmorgan Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Jpmorgan Equity.
Diversification Opportunities for Eaton Vance and Jpmorgan Equity
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eaton and Jpmorgan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Large Cap and Jpmorgan Equity Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Equity 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 Jpmorgan Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Equity has no effect on the direction of Eaton Vance i.e., Eaton Vance and Jpmorgan Equity go up and down completely randomly.
Pair Corralation between Eaton Vance and Jpmorgan Equity
Assuming the 90 days horizon Eaton Vance Large Cap is expected to generate 0.48 times more return on investment than Jpmorgan Equity. However, Eaton Vance Large Cap is 2.07 times less risky than Jpmorgan Equity. It trades about -0.21 of its potential returns per unit of risk. Jpmorgan Equity Fund is currently generating about -0.23 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. Jpmorgan Equity Fund
Performance |
| Timeline |
| Eaton Vance Large |
| Jpmorgan Equity |
Eaton Vance and Jpmorgan Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Jpmorgan Equity
The main advantage of trading using opposite Eaton Vance and Jpmorgan Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Jpmorgan Equity 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 Jpmorgan Equity will offset losses from the drop in Jpmorgan Equity's long position.| Eaton Vance vs. Ishares Municipal Bond | Eaton Vance vs. Dreyfus Municipal Bond | Eaton Vance vs. Bbh Intermediate Municipal | Eaton Vance vs. Virtus Seix Government |
| Jpmorgan Equity vs. Jpmorgan International Value | Jpmorgan Equity vs. Jpmorgan Mid Cap | Jpmorgan Equity vs. Jpmorgan Emerging Markets | Jpmorgan Equity vs. Jpmorgan High Yield |
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.
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