Correlation Between Eaton Vance and Barings Corporate
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Barings Corporate 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 Barings Corporate 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 Barings Corporate Investors, you can compare the effects of market volatilities on Eaton Vance and Barings Corporate 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 Barings Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Barings Corporate.
Diversification Opportunities for Eaton Vance and Barings Corporate
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eaton and Barings is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Barings Corporate Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Corporate 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 Barings Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Corporate has no effect on the direction of Eaton Vance i.e., Eaton Vance and Barings Corporate go up and down completely randomly.
Pair Corralation between Eaton Vance and Barings Corporate
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Barings Corporate. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 2.68 times less risky than Barings Corporate. The stock trades about -0.11 of its potential returns per unit of risk. The Barings Corporate Investors is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,924 in Barings Corporate Investors on August 30, 2024 and sell it today you would earn a total of 57.00 from holding Barings Corporate Investors or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eaton Vance National vs. Barings Corporate Investors
Performance |
| Timeline |
| Eaton Vance National |
| Barings Corporate |
Eaton Vance and Barings Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Barings Corporate
The main advantage of trading using opposite Eaton Vance and Barings Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Barings Corporate 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 Barings Corporate will offset losses from the drop in Barings Corporate'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 |
| Barings Corporate vs. Eaton Vance National | Barings Corporate vs. John Hancock Investors | Barings Corporate vs. MFS Municipal Income | Barings Corporate vs. RiverNorth Flexible Municipalome |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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