Correlation Between Eaton Vance and XAI Octagon
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and XAI Octagon 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 XAI Octagon 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 XAI Octagon Floating, you can compare the effects of market volatilities on Eaton Vance and XAI Octagon 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 XAI Octagon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and XAI Octagon.
Diversification Opportunities for Eaton Vance and XAI Octagon
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eaton and XAI is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and XAI Octagon Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAI Octagon Floating 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 XAI Octagon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XAI Octagon Floating has no effect on the direction of Eaton Vance i.e., Eaton Vance and XAI Octagon go up and down completely randomly.
Pair Corralation between Eaton Vance and XAI Octagon
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 1.43 times more return on investment than XAI Octagon. However, Eaton Vance is 1.43 times more volatile than XAI Octagon Floating. It trades about 0.1 of its potential returns per unit of risk. XAI Octagon Floating is currently generating about 0.11 per unit of risk. If you would invest 2,126 in Eaton Vance Tax on September 4, 2024 and sell it today you would earn a total of 494.00 from holding Eaton Vance Tax or generate 23.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. XAI Octagon Floating
Performance |
| Timeline |
| Eaton Vance Tax |
| XAI Octagon Floating |
Eaton Vance and XAI Octagon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and XAI Octagon
The main advantage of trading using opposite Eaton Vance and XAI Octagon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, XAI Octagon 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 XAI Octagon will offset losses from the drop in XAI Octagon's long position.| Eaton Vance vs. Calamos Convertible And | Eaton Vance vs. Calamos Strategic Total | Eaton Vance vs. Calamos Dynamic Convertible | Eaton Vance vs. Calamos LongShort Equity |
| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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