Correlation Between Eaton Vance and Credit Suisse
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Credit Suisse 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 Credit Suisse 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 Credit Suisse High, you can compare the effects of market volatilities on Eaton Vance and Credit Suisse 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 Credit Suisse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Credit Suisse.
Diversification Opportunities for Eaton Vance and Credit Suisse
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eaton and Credit is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Credit Suisse High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Credit Suisse High 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 Credit Suisse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Credit Suisse High has no effect on the direction of Eaton Vance i.e., Eaton Vance and Credit Suisse go up and down completely randomly.
Pair Corralation between Eaton Vance and Credit Suisse
Considering the 90-day investment horizon Eaton Vance is expected to generate 5.03 times less return on investment than Credit Suisse. But when comparing it to its historical volatility, Eaton Vance National is 1.32 times less risky than Credit Suisse. It trades about 0.03 of its potential returns per unit of risk. Credit Suisse High is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 164.00 in Credit Suisse High on August 31, 2024 and sell it today you would earn a total of 56.00 from holding Credit Suisse High or generate 34.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Credit Suisse High
Performance |
| Timeline |
| Eaton Vance National |
| Credit Suisse High |
Eaton Vance and Credit Suisse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Credit Suisse
The main advantage of trading using opposite Eaton Vance and Credit Suisse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Credit Suisse 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 Credit Suisse will offset losses from the drop in Credit Suisse'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 |
| Credit Suisse vs. Bny Mellon Municipalome | Credit Suisse vs. BNY Mellon High | Credit Suisse vs. Western Asset Global | Credit Suisse vs. Mfs Intermediate High |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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