Correlation Between Eaton Vance and Munivest Fund
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Munivest Fund 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 Munivest Fund 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 Munivest Fund, you can compare the effects of market volatilities on Eaton Vance and Munivest Fund 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 Munivest Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Munivest Fund.
Diversification Opportunities for Eaton Vance and Munivest Fund
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Munivest is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Municipal and Munivest Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Munivest Fund 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 Munivest Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Munivest Fund has no effect on the direction of Eaton Vance i.e., Eaton Vance and Munivest Fund go up and down completely randomly.
Pair Corralation between Eaton Vance and Munivest Fund
Considering the 90-day investment horizon Eaton Vance Municipal is expected to generate 0.92 times more return on investment than Munivest Fund. However, Eaton Vance Municipal is 1.09 times less risky than Munivest Fund. It trades about 0.16 of its potential returns per unit of risk. Munivest Fund is currently generating about 0.09 per unit of risk. If you would invest 1,009 in Eaton Vance Municipal on November 3, 2024 and sell it today you would earn a total of 22.00 from holding Eaton Vance Municipal or generate 2.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Eaton Vance Municipal vs. Munivest Fund
Performance |
| Timeline |
| Eaton Vance Municipal |
| Munivest Fund |
Eaton Vance and Munivest Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Munivest Fund
The main advantage of trading using opposite Eaton Vance and Munivest Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Munivest Fund 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 Munivest Fund will offset losses from the drop in Munivest Fund'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 |
| Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniyield Quality | Munivest Fund vs. Blackrock Muniholdings Closed | Munivest Fund vs. Blackrock Muniholdings Quality |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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