Correlation Between Eaton Vance and PHLX Swiss
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and PHLX Swiss 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 PHLX Swiss 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 PHLX Swiss Franc, you can compare the effects of market volatilities on Eaton Vance and PHLX Swiss 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 PHLX Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and PHLX Swiss.
Diversification Opportunities for Eaton Vance and PHLX Swiss
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and PHLX is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and PHLX Swiss Franc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHLX Swiss Franc 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 PHLX Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHLX Swiss Franc has no effect on the direction of Eaton Vance i.e., Eaton Vance and PHLX Swiss go up and down completely randomly.
Pair Corralation between Eaton Vance and PHLX Swiss
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 1.12 times more return on investment than PHLX Swiss. However, Eaton Vance is 1.12 times more volatile than PHLX Swiss Franc. It trades about 0.5 of its potential returns per unit of risk. PHLX Swiss Franc is currently generating about -0.15 per unit of risk. If you would invest 2,192 in Eaton Vance Enhanced on September 3, 2024 and sell it today you would earn a total of 157.00 from holding Eaton Vance Enhanced or generate 7.16% 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. PHLX Swiss Franc
Performance |
| Timeline |
Eaton Vance and PHLX Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Eaton Vance Enhanced
Pair trading matchups for Eaton Vance
PHLX Swiss Franc
Pair trading matchups for PHLX Swiss
Pair Trading with Eaton Vance and PHLX Swiss
The main advantage of trading using opposite Eaton Vance and PHLX Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, PHLX Swiss 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 PHLX Swiss will offset losses from the drop in PHLX Swiss' 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 |
| PHLX Swiss vs. American Axle Manufacturing | PHLX Swiss vs. VirnetX Holding Corp | PHLX Swiss vs. Tesla Inc | PHLX Swiss vs. Q2 Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |