Correlation Between Eaton Vance and Cohen
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Cohen 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 Cohen 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 Cohen and Steers, you can compare the effects of market volatilities on Eaton Vance and Cohen 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 Cohen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Cohen.
Diversification Opportunities for Eaton Vance and Cohen
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Cohen is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Cohen and Steers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen and Steers 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 Cohen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen and Steers has no effect on the direction of Eaton Vance i.e., Eaton Vance and Cohen go up and down completely randomly.
Pair Corralation between Eaton Vance and Cohen
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Cohen. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 1.01 times less risky than Cohen. The stock trades about -0.1 of its potential returns per unit of risk. The Cohen and Steers is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,013 in Cohen and Steers on November 1, 2024 and sell it today you would earn a total of 18.00 from holding Cohen and Steers or generate 0.89% 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. Cohen and Steers
Performance |
| Timeline |
| Eaton Vance National |
| Cohen and Steers |
Eaton Vance and Cohen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Cohen
The main advantage of trading using opposite Eaton Vance and Cohen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Cohen 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 Cohen will offset losses from the drop in Cohen's long position.| Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Federated Premier Municipal |
| Cohen vs. RiverNorth Flexible Municipalome | Cohen vs. Blackrock Muniholdings Ny | Cohen vs. MFS Investment Grade | Cohen vs. Eaton Vance National |
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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