Correlation Between Eaton Vance and ProShares Merger
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and ProShares Merger 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 ProShares Merger 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 ProShares Merger ETF, you can compare the effects of market volatilities on Eaton Vance and ProShares Merger 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 ProShares Merger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and ProShares Merger.
Diversification Opportunities for Eaton Vance and ProShares Merger
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and ProShares is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and ProShares Merger ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Merger ETF 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 ProShares Merger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Merger ETF has no effect on the direction of Eaton Vance i.e., Eaton Vance and ProShares Merger go up and down completely randomly.
Pair Corralation between Eaton Vance and ProShares Merger
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 4.57 times more return on investment than ProShares Merger. However, Eaton Vance is 4.57 times more volatile than ProShares Merger ETF. It trades about 0.13 of its potential returns per unit of risk. ProShares Merger ETF is currently generating about 0.14 per unit of risk. If you would invest 1,706 in Eaton Vance Enhanced on August 26, 2024 and sell it today you would earn a total of 609.00 from holding Eaton Vance Enhanced or generate 35.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Enhanced vs. ProShares Merger ETF
Performance |
| Timeline |
| Eaton Vance Enhanced |
| ProShares Merger ETF |
Eaton Vance and ProShares Merger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and ProShares Merger
The main advantage of trading using opposite Eaton Vance and ProShares Merger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, ProShares Merger 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 ProShares Merger will offset losses from the drop in ProShares Merger'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 |
| ProShares Merger vs. Albany International | ProShares Merger vs. Acadia Realty Trust | ProShares Merger vs. AptarGroup | ProShares Merger vs. Applied Industrial Technologies |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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