Correlation Between Eaton Vance and Platinum Asia
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Platinum Asia 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 Platinum Asia 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 Platinum Asia Investments, you can compare the effects of market volatilities on Eaton Vance and Platinum Asia 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 Platinum Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Platinum Asia.
Diversification Opportunities for Eaton Vance and Platinum Asia
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Platinum is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Platinum Asia Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Platinum Asia Investments 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 Platinum Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Platinum Asia Investments has no effect on the direction of Eaton Vance i.e., Eaton Vance and Platinum Asia go up and down completely randomly.
Pair Corralation between Eaton Vance and Platinum Asia
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Platinum Asia. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 1.72 times less risky than Platinum Asia. The stock trades about -0.23 of its potential returns per unit of risk. The Platinum Asia Investments is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Platinum Asia Investments on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Platinum Asia Investments or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Platinum Asia Investments
Performance |
| Timeline |
| Eaton Vance National |
| Platinum Asia Investments |
Eaton Vance and Platinum Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Platinum Asia
The main advantage of trading using opposite Eaton Vance and Platinum Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Platinum Asia 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 Platinum Asia will offset losses from the drop in Platinum Asia'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 |
| Platinum Asia vs. MFS Investment Grade | Platinum Asia vs. Eaton Vance National | Platinum Asia vs. Blackrock Muniyield Quality | Platinum Asia vs. Munivest Fund |
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 Stocks Directory module to find actively traded stocks across global markets.
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