Correlation Between Eaton Vance and Highland Floating
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Highland Floating 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 Highland Floating 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 Highland Floating Rate, you can compare the effects of market volatilities on Eaton Vance and Highland Floating 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 Highland Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Highland Floating.
Diversification Opportunities for Eaton Vance and Highland Floating
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eaton and Highland is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Highland Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Floating Rate 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 Highland Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Floating Rate has no effect on the direction of Eaton Vance i.e., Eaton Vance and Highland Floating go up and down completely randomly.
Pair Corralation between Eaton Vance and Highland Floating
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 0.47 times more return on investment than Highland Floating. However, Eaton Vance Tax is 2.11 times less risky than Highland Floating. It trades about 0.12 of its potential returns per unit of risk. Highland Floating Rate is currently generating about 0.01 per unit of risk. If you would invest 792.00 in Eaton Vance Tax on November 2, 2024 and sell it today you would earn a total of 70.00 from holding Eaton Vance Tax or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Highland Floating Rate
Performance |
| Timeline |
| Eaton Vance Tax |
| Highland Floating Rate |
Eaton Vance and Highland Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Highland Floating
The main advantage of trading using opposite Eaton Vance and Highland Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Highland Floating 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 Highland Floating will offset losses from the drop in Highland Floating's long position.| Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Blackrock Muniholdings Closed | Eaton Vance vs. DTF Tax Free | Eaton Vance vs. Eaton Vance Floating |
| Highland Floating vs. Neuberger Berman Next | Highland Floating vs. SRH Total Return | Highland Floating vs. Nuveen Municipal Credit | Highland Floating vs. Doubleline Income Solutions |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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