Correlation Between Eaton Vance and Virtus AllianzGI
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Virtus AllianzGI 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 Virtus AllianzGI 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 Virtus AllianzGI Convertible, you can compare the effects of market volatilities on Eaton Vance and Virtus AllianzGI 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 Virtus AllianzGI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Virtus AllianzGI.
Diversification Opportunities for Eaton Vance and Virtus AllianzGI
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Virtus is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Virtus AllianzGI Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus AllianzGI Con 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 Virtus AllianzGI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus AllianzGI Con has no effect on the direction of Eaton Vance i.e., Eaton Vance and Virtus AllianzGI go up and down completely randomly.
Pair Corralation between Eaton Vance and Virtus AllianzGI
Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 0.58 times more return on investment than Virtus AllianzGI. However, Eaton Vance Senior is 1.73 times less risky than Virtus AllianzGI. It trades about 0.2 of its potential returns per unit of risk. Virtus AllianzGI Convertible is currently generating about -0.09 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. Virtus AllianzGI Convertible
Performance |
| Timeline |
| Eaton Vance Senior |
| Virtus AllianzGI Con |
Eaton Vance and Virtus AllianzGI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Virtus AllianzGI
The main advantage of trading using opposite Eaton Vance and Virtus AllianzGI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Virtus AllianzGI 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 Virtus AllianzGI will offset losses from the drop in Virtus AllianzGI'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 |
| Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. The Gabelli Equity | Virtus AllianzGI vs. Oxford Lane Capital | Virtus AllianzGI vs. The Gabelli Utility |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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