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 Quality and Eaton Vance Mbf, 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
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackrock and Eaton is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muniholdings Quality and Eaton Vance Mbf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Mbf 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 Quality 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 Mbf 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 Quality is expected to generate 1.32 times more return on investment than Eaton Vance. However, Blackrock Muniholdings is 1.32 times more volatile than Eaton Vance Mbf. It trades about 0.16 of its potential returns per unit of risk. Eaton Vance Mbf is currently generating about -0.21 per unit of risk. If you would invest 1,013 in Blackrock Muniholdings Quality on November 4, 2024 and sell it today you would earn a total of 21.00 from holding Blackrock Muniholdings Quality or generate 2.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muniholdings Quality vs. Eaton Vance Mbf
Performance |
| Timeline |
| Blackrock Muniholdings |
| Eaton Vance Mbf |
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. MFS Investment Grade | Blackrock Muniholdings vs. Eaton Vance Municipal | Blackrock Muniholdings vs. DTF Tax Free | Blackrock Muniholdings vs. Aquagold International |
| Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance California | Eaton Vance vs. Eaton Vance New | Eaton Vance vs. BlackRock Municipal Income |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |