Correlation Between Elfun Government and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Elfun Government and Eaton Vance 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 Elfun Government and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Government Money and Eaton Vance Floating Rate, you can compare the effects of market volatilities on Elfun Government and Eaton Vance 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 Elfun Government with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Eaton Vance.
Diversification Opportunities for Elfun Government and Eaton Vance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Eaton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating and Elfun Government 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 Elfun Government Money are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Floating has no effect on the direction of Elfun Government i.e., Elfun Government and Eaton Vance go up and down completely randomly.
Pair Corralation between Elfun Government and Eaton Vance
If you would invest 1,001 in Eaton Vance Floating Rate on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Eaton Vance Floating Rate or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Elfun Government Money vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Elfun Government Money |
| Eaton Vance Floating |
Elfun Government and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Eaton Vance
The main advantage of trading using opposite Elfun Government and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Elfun Government vs. Touchstone Premium Yield | Elfun Government vs. Limited Term Tax | Elfun Government vs. Bbh Intermediate Municipal | Elfun Government vs. Versatile Bond Portfolio |
| Eaton Vance vs. First American Funds | Eaton Vance vs. Elfun Government Money | Eaton Vance vs. Hsbc Treasury Money | Eaton Vance vs. Aig 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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