Correlation Between Eaton Vance and Appleseed Fund
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Appleseed Fund 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 Appleseed Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Richard and Appleseed Fund Appleseed, you can compare the effects of market volatilities on Eaton Vance and Appleseed Fund 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 Appleseed Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Appleseed Fund.
Diversification Opportunities for Eaton Vance and Appleseed Fund
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Appleseed is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Richard and Appleseed Fund Appleseed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appleseed Fund Appleseed 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 Richard are associated (or correlated) with Appleseed Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appleseed Fund Appleseed has no effect on the direction of Eaton Vance i.e., Eaton Vance and Appleseed Fund go up and down completely randomly.
Pair Corralation between Eaton Vance and Appleseed Fund
Assuming the 90 days horizon Eaton Vance is expected to generate 1.56 times less return on investment than Appleseed Fund. But when comparing it to its historical volatility, Eaton Vance Richard is 1.21 times less risky than Appleseed Fund. It trades about 0.12 of its potential returns per unit of risk. Appleseed Fund Appleseed is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,495 in Appleseed Fund Appleseed on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Appleseed Fund Appleseed or generate 2.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Richard vs. Appleseed Fund Appleseed
Performance |
| Timeline |
| Eaton Vance Richard |
| Appleseed Fund Appleseed |
Eaton Vance and Appleseed Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Appleseed Fund
The main advantage of trading using opposite Eaton Vance and Appleseed Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Appleseed Fund 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 Appleseed Fund will offset losses from the drop in Appleseed Fund's long position.| Eaton Vance vs. Janus Trarian Fund | Eaton Vance vs. Janus Research Fund | Eaton Vance vs. Janus Enterprise Fund | Eaton Vance vs. Janus Global Technology |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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