Correlation Between Fidelity Arizona and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Fidelity Arizona 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 Arizona 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 Arizona Municipal and Eaton Vance Minnesota, you can compare the effects of market volatilities on Fidelity Arizona 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 Arizona with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Arizona and Eaton Vance.
Diversification Opportunities for Fidelity Arizona and Eaton Vance
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Eaton is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Arizona Municipal and Eaton Vance Minnesota in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Minnesota and Fidelity Arizona 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 Arizona Municipal 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 Minnesota has no effect on the direction of Fidelity Arizona i.e., Fidelity Arizona and Eaton Vance go up and down completely randomly.
Pair Corralation between Fidelity Arizona and Eaton Vance
Assuming the 90 days horizon Fidelity Arizona is expected to generate 1.12 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Fidelity Arizona Municipal is 1.19 times less risky than Eaton Vance. It trades about 0.23 of its potential returns per unit of risk. Eaton Vance Minnesota is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 896.00 in Eaton Vance Minnesota on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Eaton Vance Minnesota or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Arizona Municipal vs. Eaton Vance Minnesota
Performance |
| Timeline |
| Fidelity Arizona Mun |
| Eaton Vance Minnesota |
Fidelity Arizona and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Arizona and Eaton Vance
The main advantage of trading using opposite Fidelity Arizona and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Arizona 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 Arizona vs. Federated Ultrashort Bond | Fidelity Arizona vs. Old Westbury Short Term | Fidelity Arizona vs. Maryland Short Term Tax Free | Fidelity Arizona vs. Ultra Short Fixed Income |
| Eaton Vance vs. Ab Bond Inflation | Eaton Vance vs. Cref Inflation Linked Bond | Eaton Vance vs. American Funds Inflation | Eaton Vance vs. Aqr Managed Futures |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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