Correlation Between Fidelity Puritan and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Fidelity Puritan 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 Puritan 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 Puritan Fund and Eaton Vance Limited, you can compare the effects of market volatilities on Fidelity Puritan 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 Puritan with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Puritan and Eaton Vance.
Diversification Opportunities for Fidelity Puritan and Eaton Vance
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Eaton is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Puritan Fund and Eaton Vance Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Limited and Fidelity Puritan 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 Puritan Fund 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 Limited has no effect on the direction of Fidelity Puritan i.e., Fidelity Puritan and Eaton Vance go up and down completely randomly.
Pair Corralation between Fidelity Puritan and Eaton Vance
Assuming the 90 days horizon Fidelity Puritan Fund is expected to generate 2.52 times more return on investment than Eaton Vance. However, Fidelity Puritan is 2.52 times more volatile than Eaton Vance Limited. It trades about 0.14 of its potential returns per unit of risk. Eaton Vance Limited is currently generating about -0.12 per unit of risk. If you would invest 2,507 in Fidelity Puritan Fund on August 27, 2024 and sell it today you would earn a total of 46.00 from holding Fidelity Puritan Fund or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Puritan Fund vs. Eaton Vance Limited
Performance |
| Timeline |
| Fidelity Puritan |
| Eaton Vance Limited |
Fidelity Puritan and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Puritan and Eaton Vance
The main advantage of trading using opposite Fidelity Puritan and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Puritan 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 Puritan vs. Fidelity Balanced Fund | Fidelity Puritan vs. Fidelity Magellan Fund | Fidelity Puritan vs. Fidelity Growth Income | Fidelity Puritan vs. Fidelity Equity Income Fund |
| Eaton Vance vs. Nuveen Minnesota Municipal | Eaton Vance vs. Baird Strategic Municipal | Eaton Vance vs. Franklin High Yield | Eaton Vance vs. Ishares Municipal Bond |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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