Correlation Between Eaton Vance and Aimia
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Aimia 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 Aimia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance National and Aimia Inc, you can compare the effects of market volatilities on Eaton Vance and Aimia 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 Aimia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Aimia.
Diversification Opportunities for Eaton Vance and Aimia
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eaton and Aimia is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Aimia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimia Inc 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 National are associated (or correlated) with Aimia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimia Inc has no effect on the direction of Eaton Vance i.e., Eaton Vance and Aimia go up and down completely randomly.
Pair Corralation between Eaton Vance and Aimia
Considering the 90-day investment horizon Eaton Vance National is expected to generate 0.33 times more return on investment than Aimia. However, Eaton Vance National is 3.0 times less risky than Aimia. It trades about -0.06 of its potential returns per unit of risk. Aimia Inc is currently generating about -0.14 per unit of risk. If you would invest 1,743 in Eaton Vance National on August 30, 2024 and sell it today you would lose (13.02) from holding Eaton Vance National or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Aimia Inc
Performance |
| Timeline |
| Eaton Vance National |
| Aimia Inc |
Eaton Vance and Aimia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Aimia
The main advantage of trading using opposite Eaton Vance and Aimia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Aimia 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 Aimia will offset losses from the drop in Aimia's long position.| Eaton Vance vs. Invesco High Income | Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade |
| Aimia vs. Flow Capital Corp | Aimia vs. Ameritrans Capital Corp | Aimia vs. Blackhawk Growth Corp | Aimia vs. Azimut Holding SpA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Commodity Directory Find actively traded commodities issued by global exchanges |