Correlation Between Eaton Vance and Blackrock Inflation
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Blackrock Inflation 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 Blackrock Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance High and Blackrock Inflation Protected, you can compare the effects of market volatilities on Eaton Vance and Blackrock Inflation 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 Blackrock Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Blackrock Inflation.
Diversification Opportunities for Eaton Vance and Blackrock Inflation
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Blackrock is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance High and Blackrock Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Inflation 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 High are associated (or correlated) with Blackrock Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Inflation has no effect on the direction of Eaton Vance i.e., Eaton Vance and Blackrock Inflation go up and down completely randomly.
Pair Corralation between Eaton Vance and Blackrock Inflation
Assuming the 90 days horizon Eaton Vance High is expected to generate 0.81 times more return on investment than Blackrock Inflation. However, Eaton Vance High is 1.23 times less risky than Blackrock Inflation. It trades about 0.16 of its potential returns per unit of risk. Blackrock Inflation Protected is currently generating about 0.07 per unit of risk. If you would invest 370.00 in Eaton Vance High on September 12, 2024 and sell it today you would earn a total of 56.00 from holding Eaton Vance High or generate 15.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance High vs. Blackrock Inflation Protected
Performance |
| Timeline |
| Eaton Vance High |
| Blackrock Inflation |
Eaton Vance and Blackrock Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Blackrock Inflation
The main advantage of trading using opposite Eaton Vance and Blackrock Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Blackrock Inflation 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 Blackrock Inflation will offset losses from the drop in Blackrock Inflation's long position.| Eaton Vance vs. Blackrock Inflation Protected | Eaton Vance vs. American Funds Inflation | Eaton Vance vs. Aqr Managed Futures | Eaton Vance vs. Western Asset Inflation |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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