Correlation Between Lexinfintech Holdings and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Lexinfintech Holdings 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 Lexinfintech Holdings and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lexinfintech Holdings and Eaton Vance New, you can compare the effects of market volatilities on Lexinfintech Holdings 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 Lexinfintech Holdings with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lexinfintech Holdings and Eaton Vance.
Diversification Opportunities for Lexinfintech Holdings and Eaton Vance
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lexinfintech and Eaton is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Lexinfintech Holdings 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 Lexinfintech Holdings 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 Lexinfintech Holdings 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 Lexinfintech Holdings i.e., Lexinfintech Holdings and Eaton Vance go up and down completely randomly.
Pair Corralation between Lexinfintech Holdings and Eaton Vance
Allowing for the 90-day total investment horizon Lexinfintech Holdings is expected to generate 11.55 times more return on investment than Eaton Vance. However, Lexinfintech Holdings is 11.55 times more volatile than Eaton Vance New. It trades about 0.29 of its potential returns per unit of risk. Eaton Vance New is currently generating about 0.33 per unit of risk. If you would invest 319.00 in Lexinfintech Holdings on August 31, 2024 and sell it today you would earn a total of 171.00 from holding Lexinfintech Holdings or generate 53.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lexinfintech Holdings vs. Eaton Vance New
Performance |
| Timeline |
| Lexinfintech Holdings |
| Eaton Vance New |
Lexinfintech Holdings and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lexinfintech Holdings and Eaton Vance
The main advantage of trading using opposite Lexinfintech Holdings and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lexinfintech Holdings 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.| Lexinfintech Holdings vs. 360 Finance | Lexinfintech Holdings vs. Atlanticus Holdings | Lexinfintech Holdings vs. Qudian Inc | Lexinfintech Holdings vs. Enova International |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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