Correlation Between Eaton Vance and Tax-exempt Fund
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Tax-exempt Fund 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 Tax-exempt Fund 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 Tax Exempt Fund Of, you can compare the effects of market volatilities on Eaton Vance and Tax-exempt Fund 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 Tax-exempt Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Tax-exempt Fund.
Diversification Opportunities for Eaton Vance and Tax-exempt Fund
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Tax-exempt is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance New and Tax Exempt Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tax Exempt Fund 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 Tax-exempt Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tax Exempt Fund has no effect on the direction of Eaton Vance i.e., Eaton Vance and Tax-exempt Fund go up and down completely randomly.
Pair Corralation between Eaton Vance and Tax-exempt Fund
Assuming the 90 days horizon Eaton Vance New is expected to generate 1.15 times more return on investment than Tax-exempt Fund. However, Eaton Vance is 1.15 times more volatile than Tax Exempt Fund Of. It trades about 0.17 of its potential returns per unit of risk. Tax Exempt Fund Of is currently generating about 0.15 per unit of risk. If you would invest 947.00 in Eaton Vance New on August 29, 2024 and sell it today you would earn a total of 12.00 from holding Eaton Vance New or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance New vs. Tax Exempt Fund Of
Performance |
| Timeline |
| Eaton Vance New |
| Tax Exempt Fund |
Eaton Vance and Tax-exempt Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Tax-exempt Fund
The main advantage of trading using opposite Eaton Vance and Tax-exempt Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Tax-exempt Fund 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 Tax-exempt Fund will offset losses from the drop in Tax-exempt Fund's long position.| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
| Tax-exempt Fund vs. Rbb Fund | Tax-exempt Fund vs. Archer Balanced Fund | Tax-exempt Fund vs. Qs Large Cap | Tax-exempt Fund vs. Lord Abbett Diversified |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |