Correlation Between Eaton Vance and Ellsworth Convertible
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Ellsworth Convertible 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 Ellsworth Convertible 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 Ellsworth Convertible Growth, you can compare the effects of market volatilities on Eaton Vance and Ellsworth Convertible 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 Ellsworth Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Ellsworth Convertible.
Diversification Opportunities for Eaton Vance and Ellsworth Convertible
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eaton and Ellsworth is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Ellsworth Convertible Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ellsworth Convertible 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 Ellsworth Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ellsworth Convertible has no effect on the direction of Eaton Vance i.e., Eaton Vance and Ellsworth Convertible go up and down completely randomly.
Pair Corralation between Eaton Vance and Ellsworth Convertible
Considering the 90-day investment horizon Eaton Vance is expected to generate 8.21 times less return on investment than Ellsworth Convertible. But when comparing it to its historical volatility, Eaton Vance National is 1.25 times less risky than Ellsworth Convertible. It trades about 0.01 of its potential returns per unit of risk. Ellsworth Convertible Growth is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 788.00 in Ellsworth Convertible Growth on November 2, 2024 and sell it today you would earn a total of 218.00 from holding Ellsworth Convertible Growth or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Ellsworth Convertible Growth
Performance |
| Timeline |
| Eaton Vance National |
| Ellsworth Convertible |
Eaton Vance and Ellsworth Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Ellsworth Convertible
The main advantage of trading using opposite Eaton Vance and Ellsworth Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Ellsworth Convertible 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 Ellsworth Convertible will offset losses from the drop in Ellsworth Convertible'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 |
| Ellsworth Convertible vs. Azimut Holding SpA | Ellsworth Convertible vs. Ameritrans Capital Corp | Ellsworth Convertible vs. Gdl Closed Fund | Ellsworth Convertible vs. Gabelli Global Small |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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