Correlation Between Eaton Vance and Sitka Gold
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Sitka Gold 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 Sitka Gold 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 Sitka Gold Corp, you can compare the effects of market volatilities on Eaton Vance and Sitka Gold 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 Sitka Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Sitka Gold.
Diversification Opportunities for Eaton Vance and Sitka Gold
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eaton and Sitka is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating Rate and Sitka Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sitka Gold 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 Floating Rate are associated (or correlated) with Sitka Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sitka Gold Corp has no effect on the direction of Eaton Vance i.e., Eaton Vance and Sitka Gold go up and down completely randomly.
Pair Corralation between Eaton Vance and Sitka Gold
Assuming the 90 days horizon Eaton Vance is expected to generate 11.72 times less return on investment than Sitka Gold. But when comparing it to its historical volatility, Eaton Vance Floating Rate is 36.41 times less risky than Sitka Gold. It trades about 0.21 of its potential returns per unit of risk. Sitka Gold Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 7.81 in Sitka Gold Corp on September 14, 2024 and sell it today you would earn a total of 17.19 from holding Sitka Gold Corp or generate 220.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Eaton Vance Floating Rate vs. Sitka Gold Corp
Performance |
| Timeline |
| Eaton Vance Floating |
| Sitka Gold Corp |
Eaton Vance and Sitka Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Sitka Gold
The main advantage of trading using opposite Eaton Vance and Sitka Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Sitka Gold 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 Sitka Gold will offset losses from the drop in Sitka Gold's long position.| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
| Sitka Gold vs. Aurion Resources | Sitka Gold vs. Minera Alamos | Sitka Gold vs. Rio2 Limited | Sitka Gold vs. Roscan Gold Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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