Correlation Between Eaton Vance and EDISON
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By analyzing existing cross correlation between Eaton Vance Enhanced and EDISON INTL 4125, you can compare the effects of market volatilities on Eaton Vance and EDISON 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 EDISON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and EDISON.
Diversification Opportunities for Eaton Vance and EDISON
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and EDISON is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and EDISON INTL 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDISON INTL 4125 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 EDISON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDISON INTL 4125 has no effect on the direction of Eaton Vance i.e., Eaton Vance and EDISON go up and down completely randomly.
Pair Corralation between Eaton Vance and EDISON
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 0.72 times more return on investment than EDISON. However, Eaton Vance Enhanced is 1.38 times less risky than EDISON. It trades about 0.3 of its potential returns per unit of risk. EDISON INTL 4125 is currently generating about -0.1 per unit of risk. If you would invest 2,220 in Eaton Vance Enhanced on August 31, 2024 and sell it today you would earn a total of 108.00 from holding Eaton Vance Enhanced or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eaton Vance Enhanced vs. EDISON INTL 4125
Performance |
| Timeline |
| Eaton Vance Enhanced |
| EDISON INTL 4125 |
Eaton Vance and EDISON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and EDISON
The main advantage of trading using opposite Eaton Vance and EDISON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, EDISON 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 EDISON will offset losses from the drop in EDISON'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 |
| EDISON vs. Everspin Technologies | EDISON vs. Elmos Semiconductor SE | EDISON vs. Western Asset Investment | EDISON vs. CT Real Estate |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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