Correlation Between Pro Blend and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Pro Blend and Eaton Vance 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 Pro Blend and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pro Blend Moderate Term and Eaton Vance Small Cap, you can compare the effects of market volatilities on Pro Blend and Eaton Vance 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 Pro Blend with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pro Blend and Eaton Vance.
Diversification Opportunities for Pro Blend and Eaton Vance
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pro and Eaton is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Pro Blend Moderate Term and Eaton Vance Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Small and Pro Blend 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 Pro Blend Moderate Term are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Small has no effect on the direction of Pro Blend i.e., Pro Blend and Eaton Vance go up and down completely randomly.
Pair Corralation between Pro Blend and Eaton Vance
Assuming the 90 days horizon Pro Blend Moderate Term is expected to generate 0.38 times more return on investment than Eaton Vance. However, Pro Blend Moderate Term is 2.66 times less risky than Eaton Vance. It trades about 0.12 of its potential returns per unit of risk. Eaton Vance Small Cap is currently generating about -0.18 per unit of risk. If you would invest 1,492 in Pro Blend Moderate Term on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Pro Blend Moderate Term or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pro Blend Moderate Term vs. Eaton Vance Small Cap
Performance |
| Timeline |
| Pro Blend Moderate |
| Eaton Vance Small |
Pro Blend and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pro Blend and Eaton Vance
The main advantage of trading using opposite Pro Blend and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pro Blend position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Pro Blend vs. Pro Blend Servative Term | Pro Blend vs. Pro Blend Extended Term | Pro Blend vs. Pro Blend Maximum Term | Pro Blend vs. Greenspring Fund Retail |
| Eaton Vance vs. Fidelity Managed Retirement | Eaton Vance vs. Jp Morgan Smartretirement | Eaton Vance vs. Calvert Moderate Allocation | Eaton Vance vs. Pro Blend Moderate Term |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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