Correlation Between Eaton Vance and BlackRock Municipal
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and BlackRock 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 BlackRock Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance New and BlackRock Municipal Income, you can compare the effects of market volatilities on Eaton Vance and BlackRock 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 BlackRock Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and BlackRock Municipal.
Diversification Opportunities for Eaton Vance and BlackRock Municipal
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and BlackRock is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance New and BlackRock Municipal Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Municipal 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 New are associated (or correlated) with BlackRock Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Municipal has no effect on the direction of Eaton Vance i.e., Eaton Vance and BlackRock Municipal go up and down completely randomly.
Pair Corralation between Eaton Vance and BlackRock Municipal
Considering the 90-day investment horizon Eaton Vance New is expected to generate 1.17 times more return on investment than BlackRock Municipal. However, Eaton Vance is 1.17 times more volatile than BlackRock Municipal Income. It trades about 0.24 of its potential returns per unit of risk. BlackRock Municipal Income is currently generating about -0.05 per unit of risk. If you would invest 950.00 in Eaton Vance New on August 24, 2024 and sell it today you would earn a total of 33.00 from holding Eaton Vance New or generate 3.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance New vs. BlackRock Municipal Income
Performance |
| Timeline |
| Eaton Vance New |
| BlackRock Municipal |
Eaton Vance and BlackRock Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and BlackRock Municipal
The main advantage of trading using opposite Eaton Vance and BlackRock Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, BlackRock 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 BlackRock Municipal will offset losses from the drop in BlackRock Municipal's long position.| Eaton Vance vs. Nuveen Amt Free Municipal | Eaton Vance vs. Nuveen Municipalome | Eaton Vance vs. Pimco New York | Eaton Vance vs. Blackrock Muniholdings Ny |
| BlackRock Municipal vs. Pioneer Floating Rate | BlackRock Municipal vs. The Gabelli Equity | BlackRock Municipal vs. Pioneer Municipal High | BlackRock Municipal vs. Nuveen Global High |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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