Correlation Between Mid Cap and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Mid Cap 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 Mid Cap and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mid Cap Growth and Eaton Vance Special, you can compare the effects of market volatilities on Mid Cap 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 Mid Cap with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mid Cap and Eaton Vance.
Diversification Opportunities for Mid Cap and Eaton Vance
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mid and Eaton is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Mid Cap Growth and Eaton Vance Special in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Special and Mid Cap 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 Mid Cap Growth 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 Special has no effect on the direction of Mid Cap i.e., Mid Cap and Eaton Vance go up and down completely randomly.
Pair Corralation between Mid Cap and Eaton Vance
If you would invest 3,917 in Mid Cap Growth on September 1, 2024 and sell it today you would earn a total of 514.00 from holding Mid Cap Growth or generate 13.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Mid Cap Growth vs. Eaton Vance Special
Performance |
| Timeline |
| Mid Cap Growth |
| Eaton Vance Special |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mid Cap and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mid Cap and Eaton Vance
The main advantage of trading using opposite Mid Cap and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mid Cap 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.| Mid Cap vs. Calamos Growth Fund | Mid Cap vs. Mid Cap Growth | Mid Cap vs. Allianzgi Nfj Mid Cap | Mid Cap vs. Davis New York |
| Eaton Vance vs. Columbia Vertible Securities | Eaton Vance vs. Absolute Convertible Arbitrage | Eaton Vance vs. Advent Claymore Convertible | Eaton Vance vs. The Gamco Global |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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