Correlation Between Eaton Vance and IHIT
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and IHIT 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 IHIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax and IHIT, you can compare the effects of market volatilities on Eaton Vance and IHIT 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 IHIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and IHIT.
Diversification Opportunities for Eaton Vance and IHIT
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and IHIT is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and IHIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHIT 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 Tax are associated (or correlated) with IHIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHIT has no effect on the direction of Eaton Vance i.e., Eaton Vance and IHIT go up and down completely randomly.
Pair Corralation between Eaton Vance and IHIT
If you would invest 2,411 in Eaton Vance Tax on August 28, 2024 and sell it today you would earn a total of 140.00 from holding Eaton Vance Tax or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Eaton Vance Tax vs. IHIT
Performance |
| Timeline |
| Eaton Vance Tax |
| IHIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and IHIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and IHIT
The main advantage of trading using opposite Eaton Vance and IHIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, IHIT 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 IHIT will offset losses from the drop in IHIT's long position.| Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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