Correlation Between Eaton Vance and Cornerstone Strategic
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Cornerstone Strategic 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 Cornerstone Strategic 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 Cornerstone Strategic Value, you can compare the effects of market volatilities on Eaton Vance and Cornerstone Strategic 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 Cornerstone Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Cornerstone Strategic.
Diversification Opportunities for Eaton Vance and Cornerstone Strategic
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eaton and Cornerstone is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Cornerstone Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Strategic 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 Cornerstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Strategic has no effect on the direction of Eaton Vance i.e., Eaton Vance and Cornerstone Strategic go up and down completely randomly.
Pair Corralation between Eaton Vance and Cornerstone Strategic
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 0.21 times more return on investment than Cornerstone Strategic. However, Eaton Vance Tax is 4.72 times less risky than Cornerstone Strategic. It trades about 0.27 of its potential returns per unit of risk. Cornerstone Strategic Value is currently generating about -0.04 per unit of risk. If you would invest 1,486 in Eaton Vance Tax on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Eaton Vance Tax or generate 2.62% 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 Tax vs. Cornerstone Strategic Value
Performance |
| Timeline |
| Eaton Vance Tax |
| Cornerstone Strategic |
Eaton Vance and Cornerstone Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Cornerstone Strategic
The main advantage of trading using opposite Eaton Vance and Cornerstone Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Cornerstone Strategic 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 Cornerstone Strategic will offset losses from the drop in Cornerstone Strategic's long position.| Eaton Vance vs. Blackrock Resources Commodities | Eaton Vance vs. Blackrock International Growth | Eaton Vance vs. BlackRock Global Opportunities | Eaton Vance vs. BlackRock Health Sciences |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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