Correlation Between Eaton Vance and MFS Special
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and MFS Special 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 MFS Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Short and MFS Special Value, you can compare the effects of market volatilities on Eaton Vance and MFS Special 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 MFS Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and MFS Special.
Diversification Opportunities for Eaton Vance and MFS Special
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and MFS is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Short and MFS Special Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFS Special Value 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 Short are associated (or correlated) with MFS Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFS Special Value has no effect on the direction of Eaton Vance i.e., Eaton Vance and MFS Special go up and down completely randomly.
Pair Corralation between Eaton Vance and MFS Special
If you would invest 1,102 in Eaton Vance Short on August 31, 2024 and sell it today you would earn a total of 8.00 from holding Eaton Vance Short or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 2.27% |
| Values | Daily Returns |
Eaton Vance Short vs. MFS Special Value
Performance |
| Timeline |
| Eaton Vance Short |
| MFS Special Value |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and MFS Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and MFS Special
The main advantage of trading using opposite Eaton Vance and MFS Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, MFS Special 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 MFS Special will offset losses from the drop in MFS Special's long position.| Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select |
| MFS Special vs. Brookfield Business Corp | MFS Special vs. Elysee Development Corp | MFS Special vs. DWS Municipal Income | MFS Special vs. Blackrock Munivest |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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