Correlation Between Eaton Vance and Helios Fairfax
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Helios Fairfax 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 Helios Fairfax 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 Helios Fairfax Partners, you can compare the effects of market volatilities on Eaton Vance and Helios Fairfax 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 Helios Fairfax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Helios Fairfax.
Diversification Opportunities for Eaton Vance and Helios Fairfax
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Helios is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Helios Fairfax Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Fairfax Partners 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 Helios Fairfax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Fairfax Partners has no effect on the direction of Eaton Vance i.e., Eaton Vance and Helios Fairfax go up and down completely randomly.
Pair Corralation between Eaton Vance and Helios Fairfax
Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 0.26 times more return on investment than Helios Fairfax. However, Eaton Vance Senior is 3.91 times less risky than Helios Fairfax. It trades about 0.2 of its potential returns per unit of risk. Helios Fairfax Partners is currently generating about -0.2 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Helios Fairfax Partners
Performance |
| Timeline |
| Eaton Vance Senior |
| Helios Fairfax Partners |
Eaton Vance and Helios Fairfax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Helios Fairfax
The main advantage of trading using opposite Eaton Vance and Helios Fairfax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Helios Fairfax 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 Helios Fairfax will offset losses from the drop in Helios Fairfax'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 |
| Helios Fairfax vs. Blackhawk Growth Corp | Helios Fairfax vs. Guardian Capital Group | Helios Fairfax vs. Flow Capital Corp | Helios Fairfax vs. Princeton Capital |
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
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |