Correlation Between Eaton Vance and Aig Government
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Aig Government 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 Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Floating Rate and Aig Government Money, you can compare the effects of market volatilities on Eaton Vance and Aig Government 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 Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Aig Government.
Diversification Opportunities for Eaton Vance and Aig Government
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and Aig is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating Rate and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money 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 Floating Rate are associated (or correlated) with Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Eaton Vance i.e., Eaton Vance and Aig Government go up and down completely randomly.
Pair Corralation between Eaton Vance and Aig Government
Assuming the 90 days horizon Eaton Vance is expected to generate 3.99 times less return on investment than Aig Government. But when comparing it to its historical volatility, Eaton Vance Floating Rate is 5.77 times less risky than Aig Government. It trades about 0.22 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,006 in Aig Government Money on September 3, 2024 and sell it today you would earn a total of 8.00 from holding Aig Government Money or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Floating Rate vs. Aig Government Money
Performance |
| Timeline |
| Eaton Vance Floating |
| Aig Government Money |
Eaton Vance and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Aig Government
The main advantage of trading using opposite Eaton Vance and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Eaton Vance vs. First American Funds | Eaton Vance vs. Elfun Government Money | Eaton Vance vs. Hsbc Treasury Money | Eaton Vance vs. Aig Government Money |
| Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Mfs Massachusetts Municipal |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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