Correlation Between Eaton Vance and FS Credit
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and FS Credit 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 FS Credit 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 FS Credit Opportunities, you can compare the effects of market volatilities on Eaton Vance and FS Credit 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 FS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and FS Credit.
Diversification Opportunities for Eaton Vance and FS Credit
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and FSCO is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and FS Credit Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS Credit Opportunities 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 FS Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS Credit Opportunities has no effect on the direction of Eaton Vance i.e., Eaton Vance and FS Credit go up and down completely randomly.
Pair Corralation between Eaton Vance and FS Credit
Considering the 90-day investment horizon Eaton Vance is expected to generate 8.28 times less return on investment than FS Credit. But when comparing it to its historical volatility, Eaton Vance National is 1.78 times less risky than FS Credit. It trades about 0.03 of its potential returns per unit of risk. FS Credit Opportunities is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 669.00 in FS Credit Opportunities on November 3, 2024 and sell it today you would earn a total of 18.00 from holding FS Credit Opportunities or generate 2.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. FS Credit Opportunities
Performance |
| Timeline |
| Eaton Vance National |
| FS Credit Opportunities |
Eaton Vance and FS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and FS Credit
The main advantage of trading using opposite Eaton Vance and FS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, FS Credit 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 FS Credit will offset losses from the drop in FS Credit's long position.| Eaton Vance vs. Hudson Acquisition I | Eaton Vance vs. Marblegate Acquisition Corp | Eaton Vance vs. Alpha One | Eaton Vance vs. Manaris Corp |
| FS Credit vs. MFS Investment Grade | FS Credit vs. Eaton Vance National | FS Credit vs. Federated Premier Municipal | FS Credit vs. Investcorp Credit Management |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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