Correlation Between Eaton Vance and RiverNorth Flexible
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and RiverNorth Flexible 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 RiverNorth Flexible 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 RiverNorth Flexible Municipalome, you can compare the effects of market volatilities on Eaton Vance and RiverNorth Flexible 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 RiverNorth Flexible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and RiverNorth Flexible.
Diversification Opportunities for Eaton Vance and RiverNorth Flexible
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and RiverNorth is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and RiverNorth Flexible Municipalo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RiverNorth Flexible 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 RiverNorth Flexible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RiverNorth Flexible has no effect on the direction of Eaton Vance i.e., Eaton Vance and RiverNorth Flexible go up and down completely randomly.
Pair Corralation between Eaton Vance and RiverNorth Flexible
Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 0.82 times more return on investment than RiverNorth Flexible. However, Eaton Vance Senior is 1.21 times less risky than RiverNorth Flexible. It trades about 0.21 of its potential returns per unit of risk. RiverNorth Flexible Municipalome is currently generating about 0.14 per unit of risk. If you would invest 616.00 in Eaton Vance Senior on August 31, 2024 and sell it today you would earn a total of 13.00 from holding Eaton Vance Senior or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eaton Vance Senior vs. RiverNorth Flexible Municipalo
Performance |
| Timeline |
| Eaton Vance Senior |
| RiverNorth Flexible |
Eaton Vance and RiverNorth Flexible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and RiverNorth Flexible
The main advantage of trading using opposite Eaton Vance and RiverNorth Flexible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, RiverNorth Flexible 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 RiverNorth Flexible will offset losses from the drop in RiverNorth Flexible's long position.| Eaton Vance vs. HUMANA INC | Eaton Vance vs. SCOR PK | Eaton Vance vs. Aquagold International | Eaton Vance vs. Thrivent High Yield |
| RiverNorth Flexible vs. Blackrock Muniholdings Ny | RiverNorth Flexible vs. MFS Investment Grade | RiverNorth Flexible vs. Eaton Vance National | RiverNorth Flexible vs. Invesco High Income |
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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