Correlation Between Eaton Vance and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and ProShares Ultra 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 Ultra 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 Ultra MSCI, you can compare the effects of market volatilities on Eaton Vance and ProShares Ultra 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 Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and ProShares Ultra.
Diversification Opportunities for Eaton Vance and ProShares Ultra
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and ProShares is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and ProShares Ultra MSCI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra MSCI 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 Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra MSCI has no effect on the direction of Eaton Vance i.e., Eaton Vance and ProShares Ultra go up and down completely randomly.
Pair Corralation between Eaton Vance and ProShares Ultra
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 0.34 times more return on investment than ProShares Ultra. However, Eaton Vance Enhanced is 2.98 times less risky than ProShares Ultra. It trades about 0.1 of its potential returns per unit of risk. ProShares Ultra MSCI is currently generating about 0.0 per unit of risk. If you would invest 1,436 in Eaton Vance Enhanced on September 1, 2024 and sell it today you would earn a total of 913.00 from holding Eaton Vance Enhanced or generate 63.58% 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. ProShares Ultra MSCI
Performance |
| Timeline |
| Eaton Vance Enhanced |
| ProShares Ultra MSCI |
Eaton Vance and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and ProShares Ultra
The main advantage of trading using opposite Eaton Vance and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, ProShares Ultra 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 Ultra will offset losses from the drop in ProShares Ultra'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 Ultra vs. Direxion Daily MSCI | ProShares Ultra vs. Innovator MSCI Emerging | ProShares Ultra vs. Innovator ETFs Trust | ProShares Ultra vs. Innovator MSCI Emerging |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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