Correlation Between Oklahoma Municipal and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Oklahoma Municipal 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 Oklahoma Municipal and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oklahoma Municipal Fund and Eaton Vance Short, you can compare the effects of market volatilities on Oklahoma Municipal 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 Oklahoma Municipal with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oklahoma Municipal and Eaton Vance.
Diversification Opportunities for Oklahoma Municipal and Eaton Vance
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oklahoma and Eaton is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oklahoma Municipal Fund and Eaton Vance Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Short and Oklahoma Municipal 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 Oklahoma Municipal 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 Short has no effect on the direction of Oklahoma Municipal i.e., Oklahoma Municipal and Eaton Vance go up and down completely randomly.
Pair Corralation between Oklahoma Municipal and Eaton Vance
Assuming the 90 days horizon Oklahoma Municipal is expected to generate 2.38 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Oklahoma Municipal Fund is 1.03 times less risky than Eaton Vance. It trades about 0.04 of its potential returns per unit of risk. Eaton Vance Short is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 574.00 in Eaton Vance Short on September 12, 2024 and sell it today you would earn a total of 54.00 from holding Eaton Vance Short or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oklahoma Municipal Fund vs. Eaton Vance Short
Performance |
| Timeline |
| Oklahoma Municipal |
| Eaton Vance Short |
Oklahoma Municipal and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oklahoma Municipal and Eaton Vance
The main advantage of trading using opposite Oklahoma Municipal and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oklahoma Municipal 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.| Oklahoma Municipal vs. Aig Government Money | Oklahoma Municipal vs. Ridgeworth Seix Government | Oklahoma Municipal vs. Elfun Government Money | Oklahoma Municipal vs. Goldman Sachs Government |
| Eaton Vance vs. Pace Municipal Fixed | Eaton Vance vs. Baird Strategic Municipal | Eaton Vance vs. Oklahoma Municipal Fund | Eaton Vance vs. Morningstar Municipal Bond |
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
| CEOs Directory Screen CEOs from public companies around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |