Correlation Between Eaton Vance and Baird Strategic
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Baird Strategic 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 Baird Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Balanced and Baird Strategic Municipal, you can compare the effects of market volatilities on Eaton Vance and Baird Strategic 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 Baird Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Baird Strategic.
Diversification Opportunities for Eaton Vance and Baird Strategic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and Baird is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Balanced and Baird Strategic Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baird Strategic Municipal 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 Balanced are associated (or correlated) with Baird Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baird Strategic Municipal has no effect on the direction of Eaton Vance i.e., Eaton Vance and Baird Strategic go up and down completely randomly.
Pair Corralation between Eaton Vance and Baird Strategic
Assuming the 90 days horizon Eaton Vance Balanced is expected to generate 3.64 times more return on investment than Baird Strategic. However, Eaton Vance is 3.64 times more volatile than Baird Strategic Municipal. It trades about 0.14 of its potential returns per unit of risk. Baird Strategic Municipal is currently generating about 0.13 per unit of risk. If you would invest 950.00 in Eaton Vance Balanced on August 31, 2024 and sell it today you would earn a total of 301.00 from holding Eaton Vance Balanced or generate 31.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Balanced vs. Baird Strategic Municipal
Performance |
| Timeline |
| Eaton Vance Balanced |
| Baird Strategic Municipal |
Eaton Vance and Baird Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Baird Strategic
The main advantage of trading using opposite Eaton Vance and Baird Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Baird Strategic 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 Baird Strategic will offset losses from the drop in Baird Strategic's long position.| Eaton Vance vs. American Funds American | Eaton Vance vs. American Funds American | Eaton Vance vs. American Balanced | Eaton Vance vs. American Balanced Fund |
| Baird Strategic vs. Federated Ohio Municipal | Baird Strategic vs. Versatile Bond Portfolio | Baird Strategic vs. Artisan High Income | Baird Strategic vs. Transamerica Intermediate Muni |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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