Correlation Between Eaton Vance and Sit International
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Sit International 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 Sit International 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 Sit International Growth, you can compare the effects of market volatilities on Eaton Vance and Sit International 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 Sit International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Sit International.
Diversification Opportunities for Eaton Vance and Sit International
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Sit is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Sit International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sit International Growth 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 Sit International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sit International Growth has no effect on the direction of Eaton Vance i.e., Eaton Vance and Sit International go up and down completely randomly.
Pair Corralation between Eaton Vance and Sit International
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 0.95 times more return on investment than Sit International. However, Eaton Vance Tax is 1.06 times less risky than Sit International. It trades about 0.14 of its potential returns per unit of risk. Sit International Growth is currently generating about 0.02 per unit of risk. If you would invest 1,248 in Eaton Vance Tax on September 1, 2024 and sell it today you would earn a total of 196.00 from holding Eaton Vance Tax or generate 15.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Eaton Vance Tax vs. Sit International Growth
Performance |
| Timeline |
| Eaton Vance Tax |
| Sit International Growth |
Eaton Vance and Sit International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Sit International
The main advantage of trading using opposite Eaton Vance and Sit International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Sit International 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 Sit International will offset losses from the drop in Sit International'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 |
| Sit International vs. Sit Small Cap | Sit International vs. Sit Global Dividend | Sit International vs. Sit Global Dividend | Sit International vs. Sit 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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