Correlation Between Eaton Vance and Swiss Helvetia
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Swiss Helvetia 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 Swiss Helvetia 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 Swiss Helvetia Closed, you can compare the effects of market volatilities on Eaton Vance and Swiss Helvetia 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 Swiss Helvetia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Swiss Helvetia.
Diversification Opportunities for Eaton Vance and Swiss Helvetia
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Swiss is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Municipal and Swiss Helvetia Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swiss Helvetia 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 Swiss Helvetia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swiss Helvetia Closed has no effect on the direction of Eaton Vance i.e., Eaton Vance and Swiss Helvetia go up and down completely randomly.
Pair Corralation between Eaton Vance and Swiss Helvetia
Considering the 90-day investment horizon Eaton Vance Municipal is expected to generate 0.77 times more return on investment than Swiss Helvetia. However, Eaton Vance Municipal is 1.3 times less risky than Swiss Helvetia. It trades about 0.04 of its potential returns per unit of risk. Swiss Helvetia Closed is currently generating about -0.2 per unit of risk. If you would invest 1,063 in Eaton Vance Municipal on September 2, 2024 and sell it today you would earn a total of 16.00 from holding Eaton Vance Municipal or generate 1.51% 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. Swiss Helvetia Closed
Performance |
| Timeline |
| Eaton Vance Municipal |
| Swiss Helvetia Closed |
Eaton Vance and Swiss Helvetia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Swiss Helvetia
The main advantage of trading using opposite Eaton Vance and Swiss Helvetia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Swiss Helvetia 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 Swiss Helvetia will offset losses from the drop in Swiss Helvetia'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 |
| Swiss Helvetia vs. MFS High Yield | Swiss Helvetia vs. MFS High Income | Swiss Helvetia vs. MFS Multimarket Income | Swiss Helvetia vs. MFS Intermediate 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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