Correlation Between Eaton Vance and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and IShares MSCI 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 IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Enhanced and iShares MSCI ACWI, you can compare the effects of market volatilities on Eaton Vance and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and IShares MSCI.
Diversification Opportunities for Eaton Vance and IShares MSCI
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and IShares is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and iShares MSCI ACWI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI ACWI 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 Enhanced are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI ACWI has no effect on the direction of Eaton Vance i.e., Eaton Vance and IShares MSCI go up and down completely randomly.
Pair Corralation between Eaton Vance and IShares MSCI
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 1.23 times more return on investment than IShares MSCI. However, Eaton Vance is 1.23 times more volatile than iShares MSCI ACWI. It trades about 0.12 of its potential returns per unit of risk. iShares MSCI ACWI is currently generating about 0.05 per unit of risk. If you would invest 1,511 in Eaton Vance Enhanced on August 31, 2024 and sell it today you would earn a total of 838.00 from holding Eaton Vance Enhanced or generate 55.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Enhanced vs. iShares MSCI ACWI
Performance |
| Timeline |
| Eaton Vance Enhanced |
| iShares MSCI ACWI |
Eaton Vance and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and IShares MSCI
The main advantage of trading using opposite Eaton Vance and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Eaton Vance vs. Columbia Seligman Premium | Eaton Vance vs. BlackRock Utility Infrastructure | Eaton Vance vs. BlackRock Health Sciences | Eaton Vance vs. BlackRock Science Tech |
| IShares MSCI vs. iShares MSCI ACWI | IShares MSCI vs. iShares MSCI All | IShares MSCI vs. iShares MSCI EAFE | IShares MSCI vs. SPDR MSCI ACWI |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |