Correlation Between Eaton Vance and IHIT
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and IHIT 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 IHIT 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 IHIT, you can compare the effects of market volatilities on Eaton Vance and IHIT 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 IHIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and IHIT.
Diversification Opportunities for Eaton Vance and IHIT
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and IHIT is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and IHIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHIT 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 IHIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHIT has no effect on the direction of Eaton Vance i.e., Eaton Vance and IHIT go up and down completely randomly.
Pair Corralation between Eaton Vance and IHIT
If you would invest 745.00 in IHIT on August 24, 2024 and sell it today you would earn a total of 0.00 from holding IHIT or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Eaton Vance National vs. IHIT
Performance |
| Timeline |
| Eaton Vance National |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and IHIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and IHIT
The main advantage of trading using opposite Eaton Vance and IHIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, IHIT 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 IHIT will offset losses from the drop in IHIT'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 |
| IHIT vs. MFS Investment Grade | IHIT vs. Eaton Vance National | IHIT vs. Invesco High Income | IHIT 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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