Correlation Between Eaton Vance and Blackrock Munivest
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Blackrock Munivest 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 Munivest 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 Munivest, you can compare the effects of market volatilities on Eaton Vance and Blackrock Munivest 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 Munivest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Blackrock Munivest.
Diversification Opportunities for Eaton Vance and Blackrock Munivest
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Blackrock is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Mbf and Blackrock Munivest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Munivest 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 Munivest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Munivest has no effect on the direction of Eaton Vance i.e., Eaton Vance and Blackrock Munivest go up and down completely randomly.
Pair Corralation between Eaton Vance and Blackrock Munivest
Considering the 90-day investment horizon Eaton Vance is expected to generate 1.42 times less return on investment than Blackrock Munivest. In addition to that, Eaton Vance is 1.02 times more volatile than Blackrock Munivest. It trades about 0.08 of its total potential returns per unit of risk. Blackrock Munivest is currently generating about 0.12 per unit of volatility. If you would invest 1,036 in Blackrock Munivest on September 2, 2024 and sell it today you would earn a total of 91.00 from holding Blackrock Munivest or generate 8.78% 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 Munivest
Performance |
| Timeline |
| Eaton Vance Mbf |
| Blackrock Munivest |
Eaton Vance and Blackrock Munivest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Blackrock Munivest
The main advantage of trading using opposite Eaton Vance and Blackrock Munivest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Blackrock Munivest 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 Munivest will offset losses from the drop in Blackrock Munivest'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 Munivest vs. MFS Investment Grade | Blackrock Munivest vs. Eaton Vance National | Blackrock Munivest vs. Blackrock Muniholdings Closed | Blackrock Munivest vs. Blackrock Muniyield Quality |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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