Correlation Between Focus Financial and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Focus Financial 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 Focus Financial and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Focus Financial Partners and Eaton Vance National, you can compare the effects of market volatilities on Focus Financial 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 Focus Financial with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Focus Financial and Eaton Vance.
Diversification Opportunities for Focus Financial and Eaton Vance
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Focus and Eaton is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Focus Financial Partners and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National and Focus Financial 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 Focus Financial Partners 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 National has no effect on the direction of Focus Financial i.e., Focus Financial and Eaton Vance go up and down completely randomly.
Pair Corralation between Focus Financial and Eaton Vance
If you would invest 1,413 in Eaton Vance National on September 19, 2024 and sell it today you would earn a total of 275.00 from holding Eaton Vance National or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.34% |
| Values | Daily Returns |
Focus Financial Partners vs. Eaton Vance National
Performance |
| Timeline |
| Focus Financial Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eaton Vance National |
Focus Financial and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Focus Financial and Eaton Vance
The main advantage of trading using opposite Focus Financial and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Focus Financial 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.| Focus Financial vs. Federated Premier Municipal | Focus Financial vs. Blackrock Muniyield | Focus Financial vs. Diamond Hill Investment | Focus Financial vs. NXG NextGen Infrastructure |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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