Correlation Between Eaton Vance and Exchange Traded
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Exchange Traded 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 Exchange Traded 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 Exchange Traded Concepts, you can compare the effects of market volatilities on Eaton Vance and Exchange Traded 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 Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Exchange Traded.
Diversification Opportunities for Eaton Vance and Exchange Traded
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Exchange is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts 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 Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Eaton Vance i.e., Eaton Vance and Exchange Traded go up and down completely randomly.
Pair Corralation between Eaton Vance and Exchange Traded
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 0.9 times more return on investment than Exchange Traded. However, Eaton Vance Enhanced is 1.12 times less risky than Exchange Traded. It trades about 0.1 of its potential returns per unit of risk. Exchange Traded Concepts is currently generating about 0.01 per unit of risk. If you would invest 1,445 in Eaton Vance Enhanced on September 3, 2024 and sell it today you would earn a total of 904.00 from holding Eaton Vance Enhanced or generate 62.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 30.91% |
| Values | Daily Returns |
Eaton Vance Enhanced vs. Exchange Traded Concepts
Performance |
| Timeline |
| Eaton Vance Enhanced |
| Exchange Traded Concepts |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and Exchange Traded Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Exchange Traded
The main advantage of trading using opposite Eaton Vance and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded'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 |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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