Correlation Between Eaton Vance and Voya Prime
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Voya Prime 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 Voya Prime 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 Voya Prime Rate, you can compare the effects of market volatilities on Eaton Vance and Voya Prime 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 Voya Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Voya Prime.
Diversification Opportunities for Eaton Vance and Voya Prime
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Voya is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Voya Prime Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Prime 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 Voya Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Prime Rate has no effect on the direction of Eaton Vance i.e., Eaton Vance and Voya Prime go up and down completely randomly.
Pair Corralation between Eaton Vance and Voya Prime
Considering the 90-day investment horizon Eaton Vance is expected to generate 4.43 times less return on investment than Voya Prime. But when comparing it to its historical volatility, Eaton Vance Senior is 1.1 times less risky than Voya Prime. It trades about 0.04 of its potential returns per unit of risk. Voya Prime Rate is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 688.00 in Voya Prime Rate on August 29, 2024 and sell it today you would earn a total of 89.00 from holding Voya Prime Rate or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Voya Prime Rate
Performance |
| Timeline |
| Eaton Vance Senior |
| Voya Prime Rate |
Eaton Vance and Voya Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Voya Prime
The main advantage of trading using opposite Eaton Vance and Voya Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Voya Prime 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 Voya Prime will offset losses from the drop in Voya Prime'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 |
| Voya Prime vs. Vanguard Total Stock | Voya Prime vs. Vanguard 500 Index | Voya Prime vs. Vanguard Total Stock | Voya Prime vs. Vanguard Total Stock |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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