Correlation Between Blackrock Muni and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Blackrock Muni 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 Muni 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 Muni Intermediate and Eaton Vance Tax, you can compare the effects of market volatilities on Blackrock Muni 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 Muni with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Muni and Eaton Vance.
Diversification Opportunities for Blackrock Muni and Eaton Vance
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Blackrock and Eaton is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Muni Intermediate and Eaton Vance Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax and Blackrock Muni 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 Muni Intermediate 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 Muni i.e., Blackrock Muni and Eaton Vance go up and down completely randomly.
Pair Corralation between Blackrock Muni and Eaton Vance
Considering the 90-day investment horizon Blackrock Muni Intermediate is expected to generate 1.15 times more return on investment than Eaton Vance. However, Blackrock Muni is 1.15 times more volatile than Eaton Vance Tax. It trades about 0.05 of its potential returns per unit of risk. Eaton Vance Tax is currently generating about 0.03 per unit of risk. If you would invest 1,239 in Blackrock Muni Intermediate on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Blackrock Muni Intermediate or generate 0.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Muni Intermediate vs. Eaton Vance Tax
Performance |
| Timeline |
| Blackrock Muni Inter |
| Eaton Vance Tax |
Blackrock Muni and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Muni and Eaton Vance
The main advantage of trading using opposite Blackrock Muni and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Muni 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 Muni vs. DTF Tax Free | Blackrock Muni vs. MFS High Yield | Blackrock Muni vs. MFS High Income | Blackrock Muni vs. John Hancock Income |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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