Correlation Between Eaton Vance and Azimut Holding
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Azimut Holding 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 Azimut Holding 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 Azimut Holding SpA, you can compare the effects of market volatilities on Eaton Vance and Azimut Holding 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 Azimut Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Azimut Holding.
Diversification Opportunities for Eaton Vance and Azimut Holding
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eaton and Azimut is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Azimut Holding SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Holding SpA 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 Azimut Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Holding SpA has no effect on the direction of Eaton Vance i.e., Eaton Vance and Azimut Holding go up and down completely randomly.
Pair Corralation between Eaton Vance and Azimut Holding
Considering the 90-day investment horizon Eaton Vance National is expected to generate 0.18 times more return on investment than Azimut Holding. However, Eaton Vance National is 5.67 times less risky than Azimut Holding. It trades about 0.08 of its potential returns per unit of risk. Azimut Holding SpA is currently generating about 0.0 per unit of risk. If you would invest 1,589 in Eaton Vance National on November 28, 2024 and sell it today you would earn a total of 116.00 from holding Eaton Vance National or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.07% |
| Values | Daily Returns |
Eaton Vance National vs. Azimut Holding SpA
Performance |
| Timeline |
| Eaton Vance National |
| Azimut Holding SpA |
Eaton Vance and Azimut Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Azimut Holding
The main advantage of trading using opposite Eaton Vance and Azimut Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Azimut Holding 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 Azimut Holding will offset losses from the drop in Azimut Holding's long position.| Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Federated Premier Municipal |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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