Correlation Between Munivest Fund and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Munivest Fund 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 Munivest Fund and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Munivest Fund and Eaton Vance Municipal, you can compare the effects of market volatilities on Munivest Fund 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 Munivest Fund with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Munivest Fund and Eaton Vance.
Diversification Opportunities for Munivest Fund and Eaton Vance
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Munivest and Eaton is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund and Eaton Vance Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Municipal and Munivest Fund 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 Munivest Fund 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 Municipal has no effect on the direction of Munivest Fund i.e., Munivest Fund and Eaton Vance go up and down completely randomly.
Pair Corralation between Munivest Fund and Eaton Vance
Considering the 90-day investment horizon Munivest Fund is expected to generate 1.07 times more return on investment than Eaton Vance. However, Munivest Fund is 1.07 times more volatile than Eaton Vance Municipal. It trades about 0.05 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about -0.09 per unit of risk. If you would invest 723.00 in Munivest Fund on August 26, 2024 and sell it today you would earn a total of 5.00 from holding Munivest Fund or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Munivest Fund vs. Eaton Vance Municipal
Performance |
| Timeline |
| Munivest Fund |
| Eaton Vance Municipal |
Munivest Fund and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Munivest Fund and Eaton Vance
The main advantage of trading using opposite Munivest Fund and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund 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.| Munivest Fund vs. DTF Tax Free | Munivest Fund vs. MFS High Yield | Munivest Fund vs. MFS High Income | Munivest Fund vs. John Hancock Income |
| Eaton Vance vs. Munivest Fund | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniyield Quality | Eaton Vance vs. Blackrock Muniholdings Closed |
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.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |