Correlation Between Eaton Vance and Financial
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Financial 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 Financial 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 Financial 15 Split, you can compare the effects of market volatilities on Eaton Vance and Financial 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Financial.
Diversification Opportunities for Eaton Vance and Financial
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eaton and Financial is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Financial 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial 15 Split 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial 15 Split has no effect on the direction of Eaton Vance i.e., Eaton Vance and Financial go up and down completely randomly.
Pair Corralation between Eaton Vance and Financial
Considering the 90-day investment horizon Eaton Vance Senior is expected to under-perform the Financial. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance Senior is 4.49 times less risky than Financial. The stock trades about -0.07 of its potential returns per unit of risk. The Financial 15 Split is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 665.00 in Financial 15 Split on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Financial 15 Split or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Financial 15 Split
Performance |
| Timeline |
| Eaton Vance Senior |
| Financial 15 Split |
Eaton Vance and Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Financial
The main advantage of trading using opposite Eaton Vance and Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Financial 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 Financial will offset losses from the drop in Financial's long position.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. Federated Premier Municipal |
| Financial vs. SEI Investments | Financial vs. Oxford Lane Capital | Financial vs. Blackstone Group | Financial vs. North American Financial |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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