Correlation Between Eaton Vance and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Calvert Short 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 Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Small Cap and Calvert Short Duration, you can compare the effects of market volatilities on Eaton Vance and Calvert Short 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 Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Calvert Short.
Diversification Opportunities for Eaton Vance and Calvert Short
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Calvert is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Small Cap and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration 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 Small Cap are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Eaton Vance i.e., Eaton Vance and Calvert Short go up and down completely randomly.
Pair Corralation between Eaton Vance and Calvert Short
Assuming the 90 days horizon Eaton Vance Small Cap is expected to generate 7.0 times more return on investment than Calvert Short. However, Eaton Vance is 7.0 times more volatile than Calvert Short Duration. It trades about 0.1 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.16 per unit of risk. If you would invest 1,264 in Eaton Vance Small Cap on September 4, 2024 and sell it today you would earn a total of 318.00 from holding Eaton Vance Small Cap or generate 25.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Small Cap vs. Calvert Short Duration
Performance |
| Timeline |
| Eaton Vance Small |
| Calvert Short Duration |
Eaton Vance and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Calvert Short
The main advantage of trading using opposite Eaton Vance and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Calvert Short 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 Calvert Short will offset losses from the drop in Calvert Short's long position.| Eaton Vance vs. Calvert Short Duration | Eaton Vance vs. Rbc Short Duration | Eaton Vance vs. Sterling Capital Short | Eaton Vance vs. Ab Select Longshort |
| Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Short Duration | Calvert Short vs. Calvert Income Fund | Calvert Short vs. Calvert Long Term Income |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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