Correlation Between Fidelity Capital and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Fidelity Capital 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 Fidelity Capital and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Capital Income and Eaton Vance Multi Strategy, you can compare the effects of market volatilities on Fidelity Capital 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 Fidelity Capital with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Capital and Eaton Vance.
Diversification Opportunities for Fidelity Capital and Eaton Vance
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Eaton is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Capital Income and Eaton Vance Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Multi and Fidelity Capital 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 Fidelity Capital Income 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 Multi has no effect on the direction of Fidelity Capital i.e., Fidelity Capital and Eaton Vance go up and down completely randomly.
Pair Corralation between Fidelity Capital and Eaton Vance
Assuming the 90 days horizon Fidelity Capital Income is expected to generate 3.93 times more return on investment than Eaton Vance. However, Fidelity Capital is 3.93 times more volatile than Eaton Vance Multi Strategy. It trades about 0.14 of its potential returns per unit of risk. Eaton Vance Multi Strategy is currently generating about 0.22 per unit of risk. If you would invest 1,027 in Fidelity Capital Income on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Fidelity Capital Income or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Capital Income vs. Eaton Vance Multi Strategy
Performance |
| Timeline |
| Fidelity Capital Income |
| Eaton Vance Multi |
Fidelity Capital and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Capital and Eaton Vance
The main advantage of trading using opposite Fidelity Capital and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Capital 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.| Fidelity Capital vs. Fidelity High Income | Fidelity Capital vs. Fidelity New Markets | Fidelity Capital vs. Fidelity Total Bond | Fidelity Capital vs. Fidelity Balanced Fund |
| Eaton Vance vs. Ashmore Emerging Markets | Eaton Vance vs. Dws Emerging Markets | Eaton Vance vs. Pace International Emerging | Eaton Vance vs. Barings Emerging Markets |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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