Correlation Between Eaton Vance and BlackRock MIT
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and BlackRock MIT 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 MIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Risk and BlackRock MIT II, you can compare the effects of market volatilities on Eaton Vance and BlackRock MIT 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 MIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and BlackRock MIT.
Diversification Opportunities for Eaton Vance and BlackRock MIT
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and BlackRock is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Risk and BlackRock MIT II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock MIT II 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 Risk are associated (or correlated) with BlackRock MIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock MIT II has no effect on the direction of Eaton Vance i.e., Eaton Vance and BlackRock MIT go up and down completely randomly.
Pair Corralation between Eaton Vance and BlackRock MIT
Considering the 90-day investment horizon Eaton Vance Risk is expected to generate 1.03 times more return on investment than BlackRock MIT. However, Eaton Vance is 1.03 times more volatile than BlackRock MIT II. It trades about 0.11 of its potential returns per unit of risk. BlackRock MIT II is currently generating about -0.08 per unit of risk. If you would invest 901.00 in Eaton Vance Risk on August 28, 2024 and sell it today you would earn a total of 26.00 from holding Eaton Vance Risk or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Risk vs. BlackRock MIT II
Performance |
| Timeline |
| Eaton Vance Risk |
| BlackRock MIT II |
Eaton Vance and BlackRock MIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and BlackRock MIT
The main advantage of trading using opposite Eaton Vance and BlackRock MIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, BlackRock MIT 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 MIT will offset losses from the drop in BlackRock MIT's long position.| Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax Managed | Eaton Vance vs. Eaton Vance Tax |
| BlackRock MIT vs. Blackrock Munivest | BlackRock MIT vs. Invesco Municipal Trust | BlackRock MIT vs. BlackRock Municipal Income | BlackRock MIT vs. Eaton Vance Mbf |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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