Correlation Between Eaton Vance and Bny Mellon
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Bny Mellon 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 Bny Mellon 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 Bny Mellon Municipalome, you can compare the effects of market volatilities on Eaton Vance and Bny Mellon 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 Bny Mellon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Bny Mellon.
Diversification Opportunities for Eaton Vance and Bny Mellon
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eaton and Bny is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Bny Mellon Municipalome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bny Mellon Municipalome 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 Bny Mellon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bny Mellon Municipalome has no effect on the direction of Eaton Vance i.e., Eaton Vance and Bny Mellon go up and down completely randomly.
Pair Corralation between Eaton Vance and Bny Mellon
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Bny Mellon. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 2.17 times less risky than Bny Mellon. The stock trades about -0.18 of its potential returns per unit of risk. The Bny Mellon Municipalome is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 712.00 in Bny Mellon Municipalome on August 25, 2024 and sell it today you would earn a total of 16.00 from holding Bny Mellon Municipalome or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Bny Mellon Municipalome
Performance |
| Timeline |
| Eaton Vance National |
| Bny Mellon Municipalome |
Eaton Vance and Bny Mellon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Bny Mellon
The main advantage of trading using opposite Eaton Vance and Bny Mellon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Bny Mellon 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 Bny Mellon will offset losses from the drop in Bny Mellon'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 |
| Bny Mellon vs. Blackrock Muniyield | Bny Mellon vs. Blackrock Muni Intermediate | Bny Mellon vs. Blackrock Muniyield Quality | Bny Mellon vs. Blackrock Muniyield Quality |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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