Correlation Between Blackrock Muniholdings and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Blackrock Muniholdings 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 Blackrock Muniholdings and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Muniholdings Closed and Eaton Vance Tax Managed, you can compare the effects of market volatilities on Blackrock Muniholdings 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 Blackrock Muniholdings with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muniholdings and Eaton Vance.
Diversification Opportunities for Blackrock Muniholdings and Eaton Vance
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blackrock and Eaton is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Closed and Eaton Vance Tax Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax and Blackrock Muniholdings 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 Blackrock Muniholdings Closed 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 Tax has no effect on the direction of Blackrock Muniholdings i.e., Blackrock Muniholdings and Eaton Vance go up and down completely randomly.
Pair Corralation between Blackrock Muniholdings and Eaton Vance
Considering the 90-day investment horizon Blackrock Muniholdings is expected to generate 1.56 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Blackrock Muniholdings Closed is 1.38 times less risky than Eaton Vance. It trades about 0.09 of its potential returns per unit of risk. Eaton Vance Tax Managed is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 702.00 in Eaton Vance Tax Managed on August 26, 2024 and sell it today you would earn a total of 139.00 from holding Eaton Vance Tax Managed or generate 19.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Closed vs. Eaton Vance Tax Managed
Performance |
| Timeline |
| Blackrock Muniholdings |
| Eaton Vance Tax |
Blackrock Muniholdings and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muniholdings and Eaton Vance
The main advantage of trading using opposite Blackrock Muniholdings and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muniholdings 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.| Blackrock Muniholdings vs. John Hancock Income | Blackrock Muniholdings vs. MFS High Income | Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. DTF Tax Free |
| Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Blackrock Muniholdings Closed | Eaton Vance vs. DTF Tax Free | Eaton Vance vs. Eaton Vance Floating |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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