Correlation Between Eaton Vance and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Cohen Steers 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 Cohen Steers 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 Cohen Steers Limited, you can compare the effects of market volatilities on Eaton Vance and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Cohen Steers.
Diversification Opportunities for Eaton Vance and Cohen Steers
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Cohen is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Risk and Cohen Steers Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Limited 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Limited has no effect on the direction of Eaton Vance i.e., Eaton Vance and Cohen Steers go up and down completely randomly.
Pair Corralation between Eaton Vance and Cohen Steers
Considering the 90-day investment horizon Eaton Vance Risk is expected to generate 1.08 times more return on investment than Cohen Steers. However, Eaton Vance is 1.08 times more volatile than Cohen Steers Limited. It trades about 0.07 of its potential returns per unit of risk. Cohen Steers Limited is currently generating about -0.08 per unit of risk. If you would invest 928.00 in Eaton Vance Risk on September 12, 2024 and sell it today you would earn a total of 8.00 from holding Eaton Vance Risk or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Risk vs. Cohen Steers Limited
Performance |
| Timeline |
| Eaton Vance Risk |
| Cohen Steers Limited |
Eaton Vance and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Cohen Steers
The main advantage of trading using opposite Eaton Vance and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Eaton Vance vs. Oxford Lane Capital | Eaton Vance vs. Orchid Island Capital | Eaton Vance vs. Guggenheim Strategic Opportunities | Eaton Vance vs. Stone Harbor Emerging |
| Cohen Steers vs. Tekla Healthcare Investors | Cohen Steers vs. Tekla Healthcare Opportunities | Cohen Steers vs. Eaton Vance Tax | Cohen Steers vs. Tekla World Healthcare |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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