Correlation Between Western Asset and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Western Asset 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 Western Asset and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Asset High and Eaton Vance New, you can compare the effects of market volatilities on Western Asset 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 Western Asset with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Asset and Eaton Vance.
Diversification Opportunities for Western Asset and Eaton Vance
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Western and Eaton is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Western Asset High and Eaton Vance New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance New and Western Asset 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 Western Asset High 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 New has no effect on the direction of Western Asset i.e., Western Asset and Eaton Vance go up and down completely randomly.
Pair Corralation between Western Asset and Eaton Vance
Considering the 90-day investment horizon Western Asset High is expected to generate 0.86 times more return on investment than Eaton Vance. However, Western Asset High is 1.16 times less risky than Eaton Vance. It trades about 0.08 of its potential returns per unit of risk. Eaton Vance New is currently generating about 0.02 per unit of risk. If you would invest 1,124 in Western Asset High on August 27, 2024 and sell it today you would earn a total of 92.00 from holding Western Asset High or generate 8.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Asset High vs. Eaton Vance New
Performance |
| Timeline |
| Western Asset High |
| Eaton Vance New |
Western Asset and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Asset and Eaton Vance
The main advantage of trading using opposite Western Asset and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Asset 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.| Western Asset vs. Western Asset Global | Western Asset vs. Western Asset High | Western Asset vs. Voya Global Advantage | Western Asset vs. Voya Global Equity |
| Eaton Vance vs. Nuveen Amt Free Municipal | Eaton Vance vs. Nuveen Municipalome | Eaton Vance vs. Pimco New York | Eaton Vance vs. Blackrock Muniholdings Ny |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |