Correlation Between Eaton Vance and Invesco Municipal
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Invesco Municipal 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 Invesco Municipal 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 Invesco Municipal Trust, you can compare the effects of market volatilities on Eaton Vance and Invesco Municipal 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 Invesco Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Invesco Municipal.
Diversification Opportunities for Eaton Vance and Invesco Municipal
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Invesco is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Mbf and Invesco Municipal Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Municipal Trust 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 Invesco Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Municipal Trust has no effect on the direction of Eaton Vance i.e., Eaton Vance and Invesco Municipal go up and down completely randomly.
Pair Corralation between Eaton Vance and Invesco Municipal
Considering the 90-day investment horizon Eaton Vance Mbf is expected to under-perform the Invesco Municipal. But the fund apears to be less risky and, when comparing its historical volatility, Eaton Vance Mbf is 1.21 times less risky than Invesco Municipal. The fund trades about -0.21 of its potential returns per unit of risk. The Invesco Municipal Trust is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 982.00 in Invesco Municipal Trust on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Invesco Municipal Trust or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Mbf vs. Invesco Municipal Trust
Performance |
| Timeline |
| Eaton Vance Mbf |
| Invesco Municipal Trust |
Eaton Vance and Invesco Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Invesco Municipal
The main advantage of trading using opposite Eaton Vance and Invesco Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Invesco Municipal 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 Invesco Municipal will offset losses from the drop in Invesco Municipal'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 |
| Invesco Municipal vs. Invesco Trust For | Invesco Municipal vs. Invesco Quality Municipal | Invesco Municipal vs. Invesco Municipal Opportunity | Invesco Municipal vs. MFS High Income |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |