Correlation Between Eaton Vance and BlackRock Floating
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and BlackRock Floating 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 BlackRock Floating 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 BlackRock Floating Rate, you can compare the effects of market volatilities on Eaton Vance and BlackRock Floating 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 BlackRock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and BlackRock Floating.
Diversification Opportunities for Eaton Vance and BlackRock Floating
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eaton and BlackRock is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and BlackRock Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock Floating Rate 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 BlackRock Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock Floating Rate has no effect on the direction of Eaton Vance i.e., Eaton Vance and BlackRock Floating go up and down completely randomly.
Pair Corralation between Eaton Vance and BlackRock Floating
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the BlackRock Floating. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 1.35 times less risky than BlackRock Floating. The stock trades about -0.11 of its potential returns per unit of risk. The BlackRock Floating Rate is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,308 in BlackRock Floating Rate on August 31, 2024 and sell it today you would lose (7.00) from holding BlackRock Floating Rate or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. BlackRock Floating Rate
Performance |
| Timeline |
| Eaton Vance National |
| BlackRock Floating Rate |
Eaton Vance and BlackRock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and BlackRock Floating
The main advantage of trading using opposite Eaton Vance and BlackRock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, BlackRock Floating 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 BlackRock Floating will offset losses from the drop in BlackRock Floating'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 |
| BlackRock Floating vs. Eaton Vance National | BlackRock Floating vs. Invesco High Income | BlackRock Floating vs. Blackrock Muniholdings Ny | BlackRock Floating vs. Nuveen California Select |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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