Correlation Between Saat Moderate and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Saat Moderate 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 Saat Moderate and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Moderate Strategy and Eaton Vance Tax Managed, you can compare the effects of market volatilities on Saat Moderate 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 Saat Moderate with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Moderate and Eaton Vance.
Diversification Opportunities for Saat Moderate and Eaton Vance
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Saat and Eaton is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Saat Moderate Strategy and Eaton Vance Tax Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax and Saat Moderate 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 Saat Moderate Strategy 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 Tax has no effect on the direction of Saat Moderate i.e., Saat Moderate and Eaton Vance go up and down completely randomly.
Pair Corralation between Saat Moderate and Eaton Vance
Assuming the 90 days horizon Saat Moderate Strategy is expected to generate 0.29 times more return on investment than Eaton Vance. However, Saat Moderate Strategy is 3.5 times less risky than Eaton Vance. It trades about 0.34 of its potential returns per unit of risk. Eaton Vance Tax Managed is currently generating about 0.02 per unit of risk. If you would invest 1,179 in Saat Moderate Strategy on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Saat Moderate Strategy or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Moderate Strategy vs. Eaton Vance Tax Managed
Performance |
| Timeline |
| Saat Moderate Strategy |
| Eaton Vance Tax |
Saat Moderate and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Moderate and Eaton Vance
The main advantage of trading using opposite Saat Moderate and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Moderate 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.| Saat Moderate vs. Nasdaq 100 Index Fund | Saat Moderate vs. T Rowe Price | Saat Moderate vs. Versatile Bond Portfolio | Saat Moderate vs. Balanced Fund Investor |
| Eaton Vance vs. Franklin Growth Opportunities | Eaton Vance vs. Tfa Alphagen Growth | Eaton Vance vs. T Rowe Price | Eaton Vance vs. L Abbett Growth |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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