Correlation Between Eaton Vance and Blackrock Muniyield
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Blackrock Muniyield 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 Muniyield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax and Blackrock Muniyield, you can compare the effects of market volatilities on Eaton Vance and Blackrock Muniyield 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 Muniyield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Blackrock Muniyield.
Diversification Opportunities for Eaton Vance and Blackrock Muniyield
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eaton and Blackrock is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Blackrock Muniyield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniyield 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 Tax are associated (or correlated) with Blackrock Muniyield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniyield has no effect on the direction of Eaton Vance i.e., Eaton Vance and Blackrock Muniyield go up and down completely randomly.
Pair Corralation between Eaton Vance and Blackrock Muniyield
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 0.79 times more return on investment than Blackrock Muniyield. However, Eaton Vance Tax is 1.27 times less risky than Blackrock Muniyield. It trades about 0.41 of its potential returns per unit of risk. Blackrock Muniyield is currently generating about 0.09 per unit of risk. If you would invest 1,429 in Eaton Vance Tax on August 28, 2024 and sell it today you would earn a total of 62.00 from holding Eaton Vance Tax or generate 4.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Blackrock Muniyield
Performance |
| Timeline |
| Eaton Vance Tax |
| Blackrock Muniyield |
Eaton Vance and Blackrock Muniyield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Blackrock Muniyield
The main advantage of trading using opposite Eaton Vance and Blackrock Muniyield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Blackrock Muniyield 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 Muniyield will offset losses from the drop in Blackrock Muniyield's long position.| Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax Managed | Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Eaton Vance Tax |
| Blackrock Muniyield vs. DTF Tax Free | Blackrock Muniyield vs. MFS High Yield | Blackrock Muniyield vs. MFS High Income | Blackrock Muniyield vs. John Hancock 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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