Correlation Between Eaton Vance and RiverNorthDoubleLine
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and RiverNorthDoubleLine 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 RiverNorthDoubleLine 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 RiverNorthDoubleLine Strategic Opportunity, you can compare the effects of market volatilities on Eaton Vance and RiverNorthDoubleLine 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 RiverNorthDoubleLine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and RiverNorthDoubleLine.
Diversification Opportunities for Eaton Vance and RiverNorthDoubleLine
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and RiverNorthDoubleLine is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and RiverNorthDoubleLine Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorthDoubleLine 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 RiverNorthDoubleLine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorthDoubleLine has no effect on the direction of Eaton Vance i.e., Eaton Vance and RiverNorthDoubleLine go up and down completely randomly.
Pair Corralation between Eaton Vance and RiverNorthDoubleLine
Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 0.7 times more return on investment than RiverNorthDoubleLine. However, Eaton Vance Senior is 1.43 times less risky than RiverNorthDoubleLine. It trades about 0.12 of its potential returns per unit of risk. RiverNorthDoubleLine Strategic Opportunity is currently generating about -0.15 per unit of risk. If you would invest 617.00 in Eaton Vance Senior on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Eaton Vance Senior or generate 1.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. RiverNorthDoubleLine Strategic
Performance |
| Timeline |
| Eaton Vance Senior |
| RiverNorthDoubleLine |
Eaton Vance and RiverNorthDoubleLine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and RiverNorthDoubleLine
The main advantage of trading using opposite Eaton Vance and RiverNorthDoubleLine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, RiverNorthDoubleLine 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 RiverNorthDoubleLine will offset losses from the drop in RiverNorthDoubleLine'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 |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |