Correlation Between Eaton Vance and Rand Capital
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Rand Capital 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 Rand Capital 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 Rand Capital Corp, you can compare the effects of market volatilities on Eaton Vance and Rand Capital 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 Rand Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Rand Capital.
Diversification Opportunities for Eaton Vance and Rand Capital
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eaton and Rand is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Rand Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rand Capital Corp 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 Rand Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rand Capital Corp has no effect on the direction of Eaton Vance i.e., Eaton Vance and Rand Capital go up and down completely randomly.
Pair Corralation between Eaton Vance and Rand Capital
Considering the 90-day investment horizon Eaton Vance is expected to generate 3.91 times less return on investment than Rand Capital. But when comparing it to its historical volatility, Eaton Vance Senior is 3.44 times less risky than Rand Capital. It trades about 0.09 of its potential returns per unit of risk. Rand Capital Corp is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 971.00 in Rand Capital Corp on November 9, 2024 and sell it today you would earn a total of 1,330 from holding Rand Capital Corp or generate 136.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 75.41% |
| Values | Daily Returns |
Eaton Vance Senior vs. Rand Capital Corp
Performance |
| Timeline |
| Eaton Vance Senior |
| Rand Capital Corp |
Eaton Vance and Rand Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Rand Capital
The main advantage of trading using opposite Eaton Vance and Rand Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Rand Capital 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 Rand Capital will offset losses from the drop in Rand Capital'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 |
| Rand Capital vs. Blackstone Gso Long | Rand Capital vs. First Trust Senior | Rand Capital vs. Eaton Vance Senior | Rand Capital 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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