Correlation Between Eaton Vance and Coca Cola
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Coca Cola 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 Coca Cola 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 The Coca Cola, you can compare the effects of market volatilities on Eaton Vance and Coca Cola 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 Coca Cola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Coca Cola.
Diversification Opportunities for Eaton Vance and Coca Cola
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and Coca is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and The Coca Cola in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coca Cola 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 Coca Cola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coca Cola has no effect on the direction of Eaton Vance i.e., Eaton Vance and Coca Cola go up and down completely randomly.
Pair Corralation between Eaton Vance and Coca Cola
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 1.24 times more return on investment than Coca Cola. However, Eaton Vance is 1.24 times more volatile than The Coca Cola. It trades about 0.12 of its potential returns per unit of risk. The Coca Cola is currently generating about 0.02 per unit of risk. If you would invest 2,028 in Eaton Vance Enhanced on September 5, 2024 and sell it today you would earn a total of 338.00 from holding Eaton Vance Enhanced or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Enhanced vs. The Coca Cola
Performance |
| Timeline |
| Eaton Vance Enhanced |
| Coca Cola |
Eaton Vance and Coca Cola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Coca Cola
The main advantage of trading using opposite Eaton Vance and Coca Cola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Coca Cola 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 Coca Cola will offset losses from the drop in Coca Cola's long position.| Eaton Vance vs. Western Asset High | Eaton Vance vs. Western Asset Global | Eaton Vance vs. Western Asset High | Eaton Vance vs. Voya Global Equity |
| Coca Cola vs. Monster Beverage Corp | Coca Cola vs. Celsius Holdings | Coca Cola vs. Coca Cola Consolidated | Coca Cola vs. Keurig Dr Pepper |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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