Correlation Between Eaton Vance and Franklin Oregon
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Franklin Oregon 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 Oregon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Oregon and Franklin Oregon Tax Free, you can compare the effects of market volatilities on Eaton Vance and Franklin Oregon 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 Oregon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Franklin Oregon.
Diversification Opportunities for Eaton Vance and Franklin Oregon
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Eaton and Franklin is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Oregon and Franklin Oregon Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Oregon 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 Oregon are associated (or correlated) with Franklin Oregon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Oregon Tax has no effect on the direction of Eaton Vance i.e., Eaton Vance and Franklin Oregon go up and down completely randomly.
Pair Corralation between Eaton Vance and Franklin Oregon
Assuming the 90 days horizon Eaton Vance Oregon is expected to generate 0.95 times more return on investment than Franklin Oregon. However, Eaton Vance Oregon is 1.05 times less risky than Franklin Oregon. It trades about 0.55 of its potential returns per unit of risk. Franklin Oregon Tax Free is currently generating about 0.47 per unit of risk. If you would invest 797.00 in Eaton Vance Oregon on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Eaton Vance Oregon or generate 1.25% 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 Oregon vs. Franklin Oregon Tax Free
Performance |
| Timeline |
| Eaton Vance Oregon |
| Franklin Oregon Tax |
Eaton Vance and Franklin Oregon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Franklin Oregon
The main advantage of trading using opposite Eaton Vance and Franklin Oregon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Franklin Oregon 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 Oregon will offset losses from the drop in Franklin Oregon's long position.| Eaton Vance vs. Wesmark Government Bond | Eaton Vance vs. Wesmark Growth Fund | Eaton Vance vs. Wesmark Balanced Fund | Eaton Vance vs. Wesmark Small Pany |
| Franklin Oregon vs. New Jersey Tax Free | Franklin Oregon vs. Maryland Tax Free Bond | Franklin Oregon vs. New York Tax Free | Franklin Oregon vs. Maryland Short Term Tax Free |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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