Correlation Between Mutual Of and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Mutual Of 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 Mutual Of and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Eaton Vance Large Cap, you can compare the effects of market volatilities on Mutual Of 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 Mutual Of with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Eaton Vance.
Diversification Opportunities for Mutual Of and Eaton Vance
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Mutual and Eaton is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and Eaton Vance Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Large and Mutual Of 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 Mutual Of America 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 Large has no effect on the direction of Mutual Of i.e., Mutual Of and Eaton Vance go up and down completely randomly.
Pair Corralation between Mutual Of and Eaton Vance
Assuming the 90 days horizon Mutual Of America is expected to under-perform the Eaton Vance. In addition to that, Mutual Of is 1.95 times more volatile than Eaton Vance Large Cap. It trades about -0.36 of its total potential returns per unit of risk. Eaton Vance Large Cap is currently generating about -0.2 per unit of volatility. If you would invest 2,660 in Eaton Vance Large Cap on October 12, 2024 and sell it today you would lose (87.00) from holding Eaton Vance Large Cap or give up 3.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Of America vs. Eaton Vance Large Cap
Performance |
| Timeline |
| Mutual Of America |
| Eaton Vance Large |
Mutual Of and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and Eaton Vance
The main advantage of trading using opposite Mutual Of and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of 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.| Mutual Of vs. American Funds Inflation | Mutual Of vs. Asg Managed Futures | Mutual Of vs. Tiaa Cref Inflation Linked Bond | Mutual Of vs. Inflation Adjusted Bond Fund |
| Eaton Vance vs. Small Cap Value Fund | Eaton Vance vs. Mutual Of America | Eaton Vance vs. Lsv Small Cap | Eaton Vance vs. Heartland Value Plus |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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