Correlation Between Short-term Government and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Short-term Government 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 Short-term Government and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Short Term Government Fund and Eaton Vance Floating Rate, you can compare the effects of market volatilities on Short-term Government 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 Short-term Government with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Short-term Government and Eaton Vance.
Diversification Opportunities for Short-term Government and Eaton Vance
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Short-term and Eaton is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Short Term Government Fund and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating and Short-term Government 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 Short Term Government Fund 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 Floating has no effect on the direction of Short-term Government i.e., Short-term Government and Eaton Vance go up and down completely randomly.
Pair Corralation between Short-term Government and Eaton Vance
Assuming the 90 days horizon Short Term Government Fund is not expected to generate positive returns. Moreover, Short-term Government is 1.69 times more volatile than Eaton Vance Floating Rate. It trades away all of its potential returns to assume current level of volatility. Eaton Vance Floating Rate is currently generating about 0.1 per unit of risk. If you would invest 837.00 in Eaton Vance Floating Rate on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Eaton Vance Floating Rate or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Short Term Government Fund vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Short Term Government |
| Eaton Vance Floating |
Short-term Government and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Short-term Government and Eaton Vance
The main advantage of trading using opposite Short-term Government and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Short-term Government 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.| Short-term Government vs. Gmo High Yield | Short-term Government vs. Dreyfusstandish Global Fixed | Short-term Government vs. Maryland Tax Free Bond | Short-term Government vs. Limited Term Tax |
| Eaton Vance vs. Short Term Government Fund | Eaton Vance vs. Us Government Securities | Eaton Vance vs. Us Government Securities | Eaton Vance vs. Prudential Government Income |
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 Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |