Correlation Between Eaton Vance and MFS High
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and MFS High 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 MFS High 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 MFS High Income, you can compare the effects of market volatilities on Eaton Vance and MFS High 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 MFS High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and MFS High.
Diversification Opportunities for Eaton Vance and MFS High
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and MFS is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and MFS High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS High Income 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 MFS High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS High Income has no effect on the direction of Eaton Vance i.e., Eaton Vance and MFS High go up and down completely randomly.
Pair Corralation between Eaton Vance and MFS High
Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 0.72 times more return on investment than MFS High. However, Eaton Vance Senior is 1.38 times less risky than MFS High. It trades about 0.2 of its potential returns per unit of risk. MFS High Income is currently generating about 0.12 per unit of risk. If you would invest 617.00 in Eaton Vance Senior on September 1, 2024 and sell it today you would earn a total of 12.00 from holding Eaton Vance Senior or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. MFS High Income
Performance |
| Timeline |
| Eaton Vance Senior |
| MFS High Income |
Eaton Vance and MFS High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and MFS High
The main advantage of trading using opposite Eaton Vance and MFS High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, MFS High 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 MFS High will offset losses from the drop in MFS High'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 |
| MFS High vs. MFS Investment Grade | MFS High vs. Eaton Vance National | MFS High vs. Invesco High Income | MFS High vs. Blackrock Muniholdings Ny |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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