Correlation Between Eaton Vance and Applied Finance
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Applied Finance 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 Applied Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Virginia and Applied Finance Explorer, you can compare the effects of market volatilities on Eaton Vance and Applied Finance 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 Applied Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Applied Finance.
Diversification Opportunities for Eaton Vance and Applied Finance
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eaton and Applied is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Virginia and Applied Finance Explorer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Finance Explorer 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 Virginia are associated (or correlated) with Applied Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Finance Explorer has no effect on the direction of Eaton Vance i.e., Eaton Vance and Applied Finance go up and down completely randomly.
Pair Corralation between Eaton Vance and Applied Finance
Assuming the 90 days horizon Eaton Vance Virginia is expected to generate 0.26 times more return on investment than Applied Finance. However, Eaton Vance Virginia is 3.87 times less risky than Applied Finance. It trades about 0.13 of its potential returns per unit of risk. Applied Finance Explorer is currently generating about -0.04 per unit of risk. If you would invest 711.00 in Eaton Vance Virginia on November 30, 2024 and sell it today you would earn a total of 9.00 from holding Eaton Vance Virginia or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Virginia vs. Applied Finance Explorer
Performance |
| Timeline |
| Eaton Vance Virginia |
| Applied Finance Explorer |
Eaton Vance and Applied Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Applied Finance
The main advantage of trading using opposite Eaton Vance and Applied Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Applied Finance 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 Applied Finance will offset losses from the drop in Applied Finance's long position.| Eaton Vance vs. Transamerica Mlp Energy | Eaton Vance vs. Franklin Natural Resources | Eaton Vance vs. Pimco Energy Tactical | Eaton Vance vs. Clearbridge Energy Mlp |
| Applied Finance vs. Thrivent Small Cap | Applied Finance vs. Applied Finance Select | Applied Finance vs. Parnassus Endeavor Fund | Applied Finance vs. Queens Road Small |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |