Correlation Between Eaton Vance and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Mid Cap 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 Mid Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Atlanta and Mid Cap Value, you can compare the effects of market volatilities on Eaton Vance and Mid Cap 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Mid Cap.
Diversification Opportunities for Eaton Vance and Mid Cap
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Mid is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Atlanta and Mid Cap Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Value 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 Atlanta are associated (or correlated) with Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Value has no effect on the direction of Eaton Vance i.e., Eaton Vance and Mid Cap go up and down completely randomly.
Pair Corralation between Eaton Vance and Mid Cap
Assuming the 90 days horizon Eaton Vance Atlanta is expected to generate 1.24 times more return on investment than Mid Cap. However, Eaton Vance is 1.24 times more volatile than Mid Cap Value. It trades about 0.04 of its potential returns per unit of risk. Mid Cap Value is currently generating about 0.03 per unit of risk. If you would invest 3,112 in Eaton Vance Atlanta on August 30, 2024 and sell it today you would earn a total of 534.00 from holding Eaton Vance Atlanta or generate 17.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Atlanta vs. Mid Cap Value
Performance |
| Timeline |
| Eaton Vance Atlanta |
| Mid Cap Value |
Eaton Vance and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Mid Cap
The main advantage of trading using opposite Eaton Vance and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Eaton Vance vs. Transamerica Funds | Eaton Vance vs. T Rowe Price | Eaton Vance vs. Maryland Tax Free Bond | Eaton Vance vs. Rbc Bluebay Global |
| Mid Cap vs. First Trust Specialty | Mid Cap vs. Mesirow Financial Small | Mid Cap vs. Transamerica Financial Life | Mid Cap vs. John Hancock Financial |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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