Correlation Between Eaton Vance and Korea Closed
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Korea Closed 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 Korea Closed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Municipal and Korea Closed, you can compare the effects of market volatilities on Eaton Vance and Korea Closed 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 Korea Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Korea Closed.
Diversification Opportunities for Eaton Vance and Korea Closed
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Korea is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Municipal and Korea Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Korea Closed 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 Municipal are associated (or correlated) with Korea Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Korea Closed has no effect on the direction of Eaton Vance i.e., Eaton Vance and Korea Closed go up and down completely randomly.
Pair Corralation between Eaton Vance and Korea Closed
Considering the 90-day investment horizon Eaton Vance Municipal is expected to generate 0.5 times more return on investment than Korea Closed. However, Eaton Vance Municipal is 1.98 times less risky than Korea Closed. It trades about 0.05 of its potential returns per unit of risk. Korea Closed is currently generating about 0.0 per unit of risk. If you would invest 910.00 in Eaton Vance Municipal on September 2, 2024 and sell it today you would earn a total of 169.00 from holding Eaton Vance Municipal or generate 18.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Municipal vs. Korea Closed
Performance |
| Timeline |
| Eaton Vance Municipal |
| Korea Closed |
Eaton Vance and Korea Closed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Korea Closed
The main advantage of trading using opposite Eaton Vance and Korea Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Korea Closed 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 Korea Closed will offset losses from the drop in Korea Closed's long position.| Eaton Vance vs. Munivest Fund | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniholdings Closed |
| Korea Closed vs. Mexico Equity And | Korea Closed vs. Western Asset Global | Korea Closed vs. New Germany Closed | Korea Closed vs. MFS Charter Income |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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