Correlation Between Eaton Vance and Voya Asia
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Voya Asia 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 Voya Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax Managed and Voya Asia Pacific, you can compare the effects of market volatilities on Eaton Vance and Voya Asia 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 Voya Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Voya Asia.
Diversification Opportunities for Eaton Vance and Voya Asia
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eaton and Voya is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax Managed and Voya Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Asia Pacific 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 Managed are associated (or correlated) with Voya Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Asia Pacific has no effect on the direction of Eaton Vance i.e., Eaton Vance and Voya Asia go up and down completely randomly.
Pair Corralation between Eaton Vance and Voya Asia
Considering the 90-day investment horizon Eaton Vance Tax Managed is expected to generate 0.79 times more return on investment than Voya Asia. However, Eaton Vance Tax Managed is 1.26 times less risky than Voya Asia. It trades about 0.08 of its potential returns per unit of risk. Voya Asia Pacific is currently generating about 0.05 per unit of risk. If you would invest 629.00 in Eaton Vance Tax Managed on September 12, 2024 and sell it today you would earn a total of 226.00 from holding Eaton Vance Tax Managed or generate 35.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax Managed vs. Voya Asia Pacific
Performance |
| Timeline |
| Eaton Vance Tax |
| Voya Asia Pacific |
Eaton Vance and Voya Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Voya Asia
The main advantage of trading using opposite Eaton Vance and Voya Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Voya Asia 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 Voya Asia will offset losses from the drop in Voya Asia's long position.| Eaton Vance vs. Oxford Lane Capital | Eaton Vance vs. Orchid Island Capital | Eaton Vance vs. Guggenheim Strategic Opportunities | Eaton Vance vs. Stone Harbor Emerging |
| Voya Asia vs. The Gabelli Multimedia | Voya Asia vs. The Gabelli Equity | Voya Asia vs. Virtus AllianzGI Convertible | Voya Asia vs. The Gabelli Equity |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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