Correlation Between Eaton Vance and Franklin Ohio
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Franklin Ohio 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 Franklin Ohio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Ohio and Franklin Ohio Tax Free, you can compare the effects of market volatilities on Eaton Vance and Franklin Ohio 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 Franklin Ohio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Franklin Ohio.
Diversification Opportunities for Eaton Vance and Franklin Ohio
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eaton and Franklin is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Ohio and Franklin Ohio Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Ohio Tax 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 Ohio are associated (or correlated) with Franklin Ohio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Ohio Tax has no effect on the direction of Eaton Vance i.e., Eaton Vance and Franklin Ohio go up and down completely randomly.
Pair Corralation between Eaton Vance and Franklin Ohio
Assuming the 90 days horizon Eaton Vance is expected to generate 1.15 times less return on investment than Franklin Ohio. But when comparing it to its historical volatility, Eaton Vance Ohio is 1.05 times less risky than Franklin Ohio. It trades about 0.19 of its potential returns per unit of risk. Franklin Ohio Tax Free is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,145 in Franklin Ohio Tax Free on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Franklin Ohio Tax Free or generate 1.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Ohio vs. Franklin Ohio Tax Free
Performance |
| Timeline |
| Eaton Vance Ohio |
| Franklin Ohio Tax |
Eaton Vance and Franklin Ohio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Franklin Ohio
The main advantage of trading using opposite Eaton Vance and Franklin Ohio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Franklin Ohio 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 Franklin Ohio will offset losses from the drop in Franklin Ohio's long position.| Eaton Vance vs. Vanguard Ohio Long Term | Eaton Vance vs. Franklin Ohio Tax Free | Eaton Vance vs. Fidelity Ohio Municipal | Eaton Vance vs. HUMANA INC |
| Franklin Ohio vs. Vanguard Ohio Long Term | Franklin Ohio vs. Franklin Ohio Tax Free | Franklin Ohio vs. Fidelity Ohio Municipal | Franklin Ohio vs. HUMANA INC |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world |