Correlation Between Eaton Vance and Flow Capital
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Flow Capital 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 Flow Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Senior and Flow Capital Corp, you can compare the effects of market volatilities on Eaton Vance and Flow Capital 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 Flow Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Flow Capital.
Diversification Opportunities for Eaton Vance and Flow Capital
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eaton and Flow is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Flow Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Capital Corp 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 Senior are associated (or correlated) with Flow Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Capital Corp has no effect on the direction of Eaton Vance i.e., Eaton Vance and Flow Capital go up and down completely randomly.
Pair Corralation between Eaton Vance and Flow Capital
If you would invest 616.00 in Eaton Vance Senior on August 24, 2024 and sell it today you would earn a total of 8.00 from holding Eaton Vance Senior or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Flow Capital Corp
Performance |
| Timeline |
| Eaton Vance Senior |
| Flow Capital Corp |
Eaton Vance and Flow Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Flow Capital
The main advantage of trading using opposite Eaton Vance and Flow Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Flow Capital 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 Flow Capital will offset losses from the drop in Flow Capital's long position.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
| Flow Capital vs. Guardian Capital Group | Flow Capital vs. Urbana | Flow Capital vs. Princeton Capital | Flow Capital vs. Blackhawk Growth Corp |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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