Correlation Between Eaton Vance and BlackRock MIT
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and BlackRock MIT 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 BlackRock MIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Mbf and BlackRock MIT II, you can compare the effects of market volatilities on Eaton Vance and BlackRock MIT 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 BlackRock MIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and BlackRock MIT.
Diversification Opportunities for Eaton Vance and BlackRock MIT
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and BlackRock is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Mbf and BlackRock MIT II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock MIT II 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 Mbf are associated (or correlated) with BlackRock MIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock MIT II has no effect on the direction of Eaton Vance i.e., Eaton Vance and BlackRock MIT go up and down completely randomly.
Pair Corralation between Eaton Vance and BlackRock MIT
Considering the 90-day investment horizon Eaton Vance Mbf is expected to generate 0.9 times more return on investment than BlackRock MIT. However, Eaton Vance Mbf is 1.11 times less risky than BlackRock MIT. It trades about 0.01 of its potential returns per unit of risk. BlackRock MIT II is currently generating about -0.09 per unit of risk. If you would invest 1,040 in Eaton Vance Mbf on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Eaton Vance Mbf or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Mbf vs. BlackRock MIT II
Performance |
| Timeline |
| Eaton Vance Mbf |
| BlackRock MIT II |
Eaton Vance and BlackRock MIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and BlackRock MIT
The main advantage of trading using opposite Eaton Vance and BlackRock MIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, BlackRock MIT 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 BlackRock MIT will offset losses from the drop in BlackRock MIT's long position.| Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance California | Eaton Vance vs. Eaton Vance New | Eaton Vance vs. BlackRock Municipal Income |
| BlackRock MIT vs. Invesco High Income | BlackRock MIT vs. Blackrock Muniholdings Ny | BlackRock MIT vs. Nuveen California Select | BlackRock MIT vs. MFS Investment Grade |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |