Correlation Between Franklin Lifesmart and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Franklin Lifesmart 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 Franklin Lifesmart and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Lifesmart 2050 and Eaton Vance Tax Managed, you can compare the effects of market volatilities on Franklin Lifesmart 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 Franklin Lifesmart with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Lifesmart and Eaton Vance.
Diversification Opportunities for Franklin Lifesmart and Eaton Vance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Franklin and Eaton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Lifesmart 2050 and Eaton Vance Tax Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax and Franklin Lifesmart 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 Franklin Lifesmart 2050 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 Tax has no effect on the direction of Franklin Lifesmart i.e., Franklin Lifesmart and Eaton Vance go up and down completely randomly.
Pair Corralation between Franklin Lifesmart and Eaton Vance
If you would invest (100.00) in Eaton Vance Tax Managed on August 24, 2024 and sell it today you would earn a total of 100.00 from holding Eaton Vance Tax Managed or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Franklin Lifesmart 2050 vs. Eaton Vance Tax Managed
Performance |
| Timeline |
| Franklin Lifesmart 2050 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Eaton Vance Tax |
Franklin Lifesmart and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Lifesmart and Eaton Vance
The main advantage of trading using opposite Franklin Lifesmart and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Lifesmart 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.| Franklin Lifesmart vs. Lord Abbett Vertible | Franklin Lifesmart vs. Invesco Vertible Securities | Franklin Lifesmart vs. Columbia Vertible Securities | Franklin Lifesmart vs. Calamos Dynamic Convertible |
| Eaton Vance vs. Aqr Large Cap | Eaton Vance vs. Nuveen Winslow Large Cap | Eaton Vance vs. Aqr Large Cap | Eaton Vance vs. Legg Mason Bw |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |