Correlation Between Virginia Bond and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Virginia Bond 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 Virginia Bond and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virginia Bond Fund and Eaton Vance Georgia, you can compare the effects of market volatilities on Virginia Bond 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 Virginia Bond with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virginia Bond and Eaton Vance.
Diversification Opportunities for Virginia Bond and Eaton Vance
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virginia and Eaton is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Virginia Bond Fund and Eaton Vance Georgia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Georgia and Virginia Bond 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 Virginia Bond 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 Georgia has no effect on the direction of Virginia Bond i.e., Virginia Bond and Eaton Vance go up and down completely randomly.
Pair Corralation between Virginia Bond and Eaton Vance
Assuming the 90 days horizon Virginia Bond Fund is expected to generate 1.2 times more return on investment than Eaton Vance. However, Virginia Bond is 1.2 times more volatile than Eaton Vance Georgia. It trades about 0.31 of its potential returns per unit of risk. Eaton Vance Georgia is currently generating about 0.2 per unit of risk. If you would invest 1,041 in Virginia Bond Fund on August 31, 2024 and sell it today you would earn a total of 26.00 from holding Virginia Bond Fund or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virginia Bond Fund vs. Eaton Vance Georgia
Performance |
| Timeline |
| Virginia Bond |
| Eaton Vance Georgia |
Virginia Bond and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virginia Bond and Eaton Vance
The main advantage of trading using opposite Virginia Bond and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virginia Bond 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.| Virginia Bond vs. Virginia Tax Free Bond | Virginia Bond vs. Virginia Bond Fund | Virginia Bond vs. Virginia Tax Free Bond | Virginia Bond vs. Prudential Jennison International |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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