Correlation Between Eaton Vance and Amplify Bloomberg
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Amplify Bloomberg 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 Amplify Bloomberg 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 Amplify Bloomberg Treasury, you can compare the effects of market volatilities on Eaton Vance and Amplify Bloomberg 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 Amplify Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Amplify Bloomberg.
Diversification Opportunities for Eaton Vance and Amplify Bloomberg
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Amplify is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and Amplify Bloomberg Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Bloomberg 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 Amplify Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Bloomberg has no effect on the direction of Eaton Vance i.e., Eaton Vance and Amplify Bloomberg go up and down completely randomly.
Pair Corralation between Eaton Vance and Amplify Bloomberg
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 0.71 times more return on investment than Amplify Bloomberg. However, Eaton Vance Enhanced is 1.4 times less risky than Amplify Bloomberg. It trades about 0.5 of its potential returns per unit of risk. Amplify Bloomberg Treasury is currently generating about 0.01 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Enhanced vs. Amplify Bloomberg Treasury
Performance |
| Timeline |
| Eaton Vance Enhanced |
| Amplify Bloomberg |
Eaton Vance and Amplify Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Amplify Bloomberg
The main advantage of trading using opposite Eaton Vance and Amplify Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Amplify Bloomberg 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 Amplify Bloomberg will offset losses from the drop in Amplify Bloomberg'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 |
| Amplify Bloomberg vs. Global X Funds | Amplify Bloomberg vs. US Treasury 12 | Amplify Bloomberg vs. Tidal Trust II | Amplify Bloomberg vs. Franklin Liberty Treasury |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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