Correlation Between Sofina Société and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Sofina Société 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 Sofina Société and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sofina Socit Anonyme and Eaton Vance National, you can compare the effects of market volatilities on Sofina Société 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 Sofina Société with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sofina Société and Eaton Vance.
Diversification Opportunities for Sofina Société and Eaton Vance
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sofina and Eaton is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sofina Socit Anonyme and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National and Sofina Société 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 Sofina Socit Anonyme 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 National has no effect on the direction of Sofina Société i.e., Sofina Société and Eaton Vance go up and down completely randomly.
Pair Corralation between Sofina Société and Eaton Vance
Assuming the 90 days horizon Sofina Socit Anonyme is expected to under-perform the Eaton Vance. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sofina Socit Anonyme is 1.27 times less risky than Eaton Vance. The pink sheet trades about -0.04 of its potential returns per unit of risk. The Eaton Vance National is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,589 in Eaton Vance National on November 28, 2024 and sell it today you would earn a total of 116.00 from holding Eaton Vance National or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sofina Socit Anonyme vs. Eaton Vance National
Performance |
| Timeline |
| Sofina Socit Anonyme |
| Eaton Vance National |
Sofina Société and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sofina Société and Eaton Vance
The main advantage of trading using opposite Sofina Société and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sofina Société 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.| Sofina Société vs. Marygold Companies | Sofina Société vs. Carbon Streaming Corp | Sofina Société vs. Arrowmark Financial Corp | Sofina Société vs. Patria Investments |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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