Correlation Between Nasdaq 100 and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Nasdaq 100 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 Nasdaq 100 and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq 100 Fund Class and Eaton Vance Ohio, you can compare the effects of market volatilities on Nasdaq 100 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 Nasdaq 100 with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq 100 and Eaton Vance.
Diversification Opportunities for Nasdaq 100 and Eaton Vance
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nasdaq and Eaton is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq 100 Fund Class and Eaton Vance Ohio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Ohio and Nasdaq 100 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 Nasdaq 100 Fund Class 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 Ohio has no effect on the direction of Nasdaq 100 i.e., Nasdaq 100 and Eaton Vance go up and down completely randomly.
Pair Corralation between Nasdaq 100 and Eaton Vance
Assuming the 90 days horizon Nasdaq 100 Fund Class is expected to generate 3.97 times more return on investment than Eaton Vance. However, Nasdaq 100 is 3.97 times more volatile than Eaton Vance Ohio. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance Ohio is currently generating about 0.01 per unit of risk. If you would invest 7,277 in Nasdaq 100 Fund Class on September 13, 2024 and sell it today you would earn a total of 677.00 from holding Nasdaq 100 Fund Class or generate 9.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nasdaq 100 Fund Class vs. Eaton Vance Ohio
Performance |
| Timeline |
| Nasdaq 100 Fund |
| Eaton Vance Ohio |
Nasdaq 100 and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq 100 and Eaton Vance
The main advantage of trading using opposite Nasdaq 100 and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 100 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.| Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 Fund Class | Nasdaq 100 vs. Nasdaq 100 2x Strategy | Nasdaq 100 vs. Dow 2x Strategy |
| Eaton Vance vs. Western Asset High | Eaton Vance vs. Ab High Income | Eaton Vance vs. Needham Aggressive Growth | Eaton Vance vs. Franklin High Income |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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