Correlation Between Eaton Vance and Hanlon Tactical
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Hanlon Tactical 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 Hanlon Tactical 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 Hanlon Tactical Dividend, you can compare the effects of market volatilities on Eaton Vance and Hanlon Tactical 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 Hanlon Tactical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Hanlon Tactical.
Diversification Opportunities for Eaton Vance and Hanlon Tactical
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Hanlon is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Hanlon Tactical Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanlon Tactical Dividend 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 Hanlon Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanlon Tactical Dividend has no effect on the direction of Eaton Vance i.e., Eaton Vance and Hanlon Tactical go up and down completely randomly.
Pair Corralation between Eaton Vance and Hanlon Tactical
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 0.96 times more return on investment than Hanlon Tactical. However, Eaton Vance Tax is 1.04 times less risky than Hanlon Tactical. It trades about 0.07 of its potential returns per unit of risk. Hanlon Tactical Dividend is currently generating about 0.04 per unit of risk. If you would invest 1,422 in Eaton Vance Tax on October 22, 2024 and sell it today you would earn a total of 13.00 from holding Eaton Vance Tax or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Hanlon Tactical Dividend
Performance |
| Timeline |
| Eaton Vance Tax |
| Hanlon Tactical Dividend |
Eaton Vance and Hanlon Tactical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Hanlon Tactical
The main advantage of trading using opposite Eaton Vance and Hanlon Tactical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Hanlon Tactical 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 Hanlon Tactical will offset losses from the drop in Hanlon Tactical's long position.| Eaton Vance vs. Eaton Vance Tax Managed | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Eaton Vance Tax |
| Hanlon Tactical vs. Tfa Alphagen Growth | Hanlon Tactical vs. Glg Intl Small | Hanlon Tactical vs. Sp Smallcap 600 | Hanlon Tactical vs. Hunter Small Cap |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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