Correlation Between Franklin Oregon and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Franklin Oregon 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 Oregon 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 Oregon Tax Free and Eaton Vance Necticut, you can compare the effects of market volatilities on Franklin Oregon 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 Oregon with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Oregon and Eaton Vance.
Diversification Opportunities for Franklin Oregon and Eaton Vance
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Franklin and Eaton is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Oregon Tax Free and Eaton Vance Necticut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Necticut and Franklin Oregon 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 Oregon Tax Free 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 Necticut has no effect on the direction of Franklin Oregon i.e., Franklin Oregon and Eaton Vance go up and down completely randomly.
Pair Corralation between Franklin Oregon and Eaton Vance
Assuming the 90 days horizon Franklin Oregon Tax Free is expected to generate 1.05 times more return on investment than Eaton Vance. However, Franklin Oregon is 1.05 times more volatile than Eaton Vance Necticut. It trades about 0.1 of its potential returns per unit of risk. Eaton Vance Necticut is currently generating about 0.1 per unit of risk. If you would invest 1,010 in Franklin Oregon Tax Free on September 2, 2024 and sell it today you would earn a total of 51.00 from holding Franklin Oregon Tax Free or generate 5.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Franklin Oregon Tax Free vs. Eaton Vance Necticut
Performance |
| Timeline |
| Franklin Oregon Tax |
| Eaton Vance Necticut |
Franklin Oregon and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Oregon and Eaton Vance
The main advantage of trading using opposite Franklin Oregon and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Oregon 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 Oregon vs. Franklin Mutual Beacon | Franklin Oregon vs. Templeton Developing Markets | Franklin Oregon vs. Franklin Mutual Global | Franklin Oregon vs. Franklin Mutual Global |
| Eaton Vance vs. Franklin Oregon Tax Free | Eaton Vance vs. Aquila Tax Free Trust | Eaton Vance vs. Nuveen Oregon Intermediate | Eaton Vance vs. Eaton Vance Ohio |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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