Correlation Between Eaton Vance and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Angel Oak 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 Angel Oak 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 Angel Oak Financial, you can compare the effects of market volatilities on Eaton Vance and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Angel Oak.
Diversification Opportunities for Eaton Vance and Angel Oak
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Angel is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Eaton Vance i.e., Eaton Vance and Angel Oak go up and down completely randomly.
Pair Corralation between Eaton Vance and Angel Oak
Considering the 90-day investment horizon Eaton Vance National is expected to generate 1.0 times more return on investment than Angel Oak. However, Eaton Vance is 1.0 times more volatile than Angel Oak Financial. It trades about -0.13 of its potential returns per unit of risk. Angel Oak Financial is currently generating about -0.31 per unit of risk. If you would invest 1,748 in Eaton Vance National on August 24, 2024 and sell it today you would lose (22.00) from holding Eaton Vance National or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eaton Vance National vs. Angel Oak Financial
Performance |
| Timeline |
| Eaton Vance National |
| Angel Oak Financial |
Eaton Vance and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Angel Oak
The main advantage of trading using opposite Eaton Vance and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Eaton Vance vs. Invesco High Income | Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Federated Premier Municipal |
| Angel Oak vs. Eaton Vance National | Angel Oak vs. Invesco High Income | Angel Oak vs. Blackrock Muniholdings Ny | Angel Oak 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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