Correlation Between Oppenheimer Senior and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Oppenheimer Senior 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 Oppenheimer Senior and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oppenheimer Senior Floating and Eaton Vance Floating Rate, you can compare the effects of market volatilities on Oppenheimer Senior 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 Oppenheimer Senior with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oppenheimer Senior and Eaton Vance.
Diversification Opportunities for Oppenheimer Senior and Eaton Vance
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oppenheimer and Eaton is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Oppenheimer Senior Floating and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating and Oppenheimer Senior 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 Oppenheimer Senior Floating 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 Floating has no effect on the direction of Oppenheimer Senior i.e., Oppenheimer Senior and Eaton Vance go up and down completely randomly.
Pair Corralation between Oppenheimer Senior and Eaton Vance
Assuming the 90 days horizon Oppenheimer Senior is expected to generate 1.14 times less return on investment than Eaton Vance. In addition to that, Oppenheimer Senior is 1.11 times more volatile than Eaton Vance Floating Rate. It trades about 0.17 of its total potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.21 per unit of volatility. If you would invest 907.00 in Eaton Vance Floating Rate on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Eaton Vance Floating Rate or generate 10.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oppenheimer Senior Floating vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Oppenheimer Senior |
| Eaton Vance Floating |
Oppenheimer Senior and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oppenheimer Senior and Eaton Vance
The main advantage of trading using opposite Oppenheimer Senior and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oppenheimer Senior 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.The idea behind Oppenheimer Senior Floating and Eaton Vance Floating Rate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |