Correlation Between Fidelity Short and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Fidelity Short 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 Short 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 Short Term Treasury and Eaton Vance Short, you can compare the effects of market volatilities on Fidelity Short 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 Short with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Short and Eaton Vance.
Diversification Opportunities for Fidelity Short and Eaton Vance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidelity and Eaton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Short Term Treasury and Eaton Vance Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Short and Fidelity Short 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 Short Term Treasury 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 Short has no effect on the direction of Fidelity Short i.e., Fidelity Short and Eaton Vance go up and down completely randomly.
Pair Corralation between Fidelity Short and Eaton Vance
Assuming the 90 days horizon Fidelity Short Term Treasury is expected to under-perform the Eaton Vance. But the mutual fund apears to be less risky and, when comparing its historical volatility, Fidelity Short Term Treasury is 1.73 times less risky than Eaton Vance. The mutual fund trades about -0.11 of its potential returns per unit of risk. The Eaton Vance Short is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 718.00 in Eaton Vance Short on August 23, 2024 and sell it today you would lose (2.00) from holding Eaton Vance Short or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Short Term Treasury vs. Eaton Vance Short
Performance |
| Timeline |
| Fidelity Short Term |
| Eaton Vance Short |
Fidelity Short and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Short and Eaton Vance
The main advantage of trading using opposite Fidelity Short and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Short 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 Short vs. Vanguard Short Term Federal | Fidelity Short vs. Vanguard Short Term Government | Fidelity Short vs. Eaton Vance Short |
| Eaton Vance vs. Baird Strategic Municipal | Eaton Vance vs. Ishares Municipal Bond | Eaton Vance vs. Dws Government Money | Eaton Vance vs. Hawaii 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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