Correlation Between Smallcap Fund and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Smallcap 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 Smallcap 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 Smallcap Fund Fka and Eaton Vance Floating Rate, you can compare the effects of market volatilities on Smallcap 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 Smallcap Fund with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smallcap Fund and Eaton Vance.
Diversification Opportunities for Smallcap Fund and Eaton Vance
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Smallcap and Eaton is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Smallcap Fund Fka 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 Smallcap 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 Smallcap Fund Fka 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 Smallcap Fund i.e., Smallcap Fund and Eaton Vance go up and down completely randomly.
Pair Corralation between Smallcap Fund and Eaton Vance
Assuming the 90 days horizon Smallcap Fund Fka is expected to generate 5.72 times more return on investment than Eaton Vance. However, Smallcap Fund is 5.72 times more volatile than Eaton Vance Floating Rate. It trades about 0.22 of its potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.26 per unit of risk. If you would invest 2,582 in Smallcap Fund Fka on October 26, 2024 and sell it today you would earn a total of 106.00 from holding Smallcap Fund Fka or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Smallcap Fund Fka vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Smallcap Fund Fka |
| Eaton Vance Floating |
Smallcap Fund and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smallcap Fund and Eaton Vance
The main advantage of trading using opposite Smallcap Fund and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smallcap 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.| Smallcap Fund vs. Strategic Asset Management | Smallcap Fund vs. Strategic Asset Management | Smallcap Fund vs. Strategic Asset Management | Smallcap Fund vs. Strategic Asset Management |
| Eaton Vance vs. Artisan Small Cap | Eaton Vance vs. Glg Intl Small | Eaton Vance vs. Smallcap Fund Fka | Eaton Vance vs. Vy Columbia Small |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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