Correlation Between SITE Centers and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both SITE Centers 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 SITE Centers and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SITE Centers Corp and Eaton Vance Senior, you can compare the effects of market volatilities on SITE Centers 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 SITE Centers with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SITE Centers and Eaton Vance.
Diversification Opportunities for SITE Centers and Eaton Vance
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SITE and Eaton is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding SITE Centers Corp and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior and SITE Centers 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 SITE Centers Corp 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 Senior has no effect on the direction of SITE Centers i.e., SITE Centers and Eaton Vance go up and down completely randomly.
Pair Corralation between SITE Centers and Eaton Vance
Assuming the 90 days trading horizon SITE Centers is expected to generate 14.21 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, SITE Centers Corp is 6.74 times less risky than Eaton Vance. It trades about 0.07 of its potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 618.00 in Eaton Vance Senior on September 5, 2024 and sell it today you would earn a total of 9.00 from holding Eaton Vance Senior or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 77.27% |
| Values | Daily Returns |
SITE Centers Corp vs. Eaton Vance Senior
Performance |
| Timeline |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Eaton Vance Senior |
SITE Centers and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SITE Centers and Eaton Vance
The main advantage of trading using opposite SITE Centers and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SITE Centers 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.| SITE Centers vs. The Gabelli Multimedia | SITE Centers vs. The Gabelli Equity | SITE Centers vs. Virtus AllianzGI Convertible | SITE Centers vs. John Hancock Income |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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