Correlation Between Stifel Financial and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Stifel Financial 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 Stifel Financial and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stifel Financial and Eaton Vance Municipal, you can compare the effects of market volatilities on Stifel Financial 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 Stifel Financial with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stifel Financial and Eaton Vance.
Diversification Opportunities for Stifel Financial and Eaton Vance
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Stifel and Eaton is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Stifel Financial 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 Stifel Financial 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 Stifel Financial 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 Stifel Financial i.e., Stifel Financial and Eaton Vance go up and down completely randomly.
Pair Corralation between Stifel Financial and Eaton Vance
Allowing for the 90-day total investment horizon Stifel Financial is expected to generate 6.29 times more return on investment than Eaton Vance. However, Stifel Financial is 6.29 times more volatile than Eaton Vance Municipal. It trades about 0.16 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about -0.02 per unit of risk. If you would invest 10,415 in Stifel Financial on August 31, 2024 and sell it today you would earn a total of 1,165 from holding Stifel Financial or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stifel Financial vs. Eaton Vance Municipal
Performance |
| Timeline |
| Stifel Financial |
| Eaton Vance Municipal |
Stifel Financial and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stifel Financial and Eaton Vance
The main advantage of trading using opposite Stifel Financial and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stifel Financial 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.| Stifel Financial vs. Raymond James Financial | Stifel Financial vs. Evercore Partners | Stifel Financial vs. Selective Insurance Group | Stifel Financial vs. Reinsurance Group of |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Federated Premier Municipal | Eaton Vance vs. Nuveen California Select |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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