Correlation Between Eaton Vance and Pioneer Floating
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Pioneer Floating 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 Pioneer Floating 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 Pioneer Floating Rate, you can compare the effects of market volatilities on Eaton Vance and Pioneer Floating 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 Pioneer Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Pioneer Floating.
Diversification Opportunities for Eaton Vance and Pioneer Floating
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Pioneer is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Pioneer Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Floating Rate 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 Pioneer Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Floating Rate has no effect on the direction of Eaton Vance i.e., Eaton Vance and Pioneer Floating go up and down completely randomly.
Pair Corralation between Eaton Vance and Pioneer Floating
Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 1.94 times more return on investment than Pioneer Floating. However, Eaton Vance is 1.94 times more volatile than Pioneer Floating Rate. It trades about 0.07 of its potential returns per unit of risk. Pioneer Floating Rate is currently generating about 0.11 per unit of risk. If you would invest 436.00 in Eaton Vance Senior on August 24, 2024 and sell it today you would earn a total of 188.00 from holding Eaton Vance Senior or generate 43.12% 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. Pioneer Floating Rate
Performance |
| Timeline |
| Eaton Vance Senior |
| Pioneer Floating Rate |
Eaton Vance and Pioneer Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Pioneer Floating
The main advantage of trading using opposite Eaton Vance and Pioneer Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Pioneer Floating 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 Pioneer Floating will offset losses from the drop in Pioneer Floating'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 |
| Pioneer Floating vs. Blackrock Floating Rate | Pioneer Floating vs. Eaton Vance Senior | Pioneer Floating vs. Eaton Vance Senior | Pioneer Floating vs. Blackrock Debt Strategies |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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