Correlation Between Cohen and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Cohen 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 Cohen and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen And Steers and Eaton Vance Enhanced, you can compare the effects of market volatilities on Cohen 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 Cohen with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen and Eaton Vance.
Diversification Opportunities for Cohen and Eaton Vance
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cohen and Eaton is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Cohen And Steers and Eaton Vance Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Enhanced and Cohen 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 Cohen And Steers 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 Enhanced has no effect on the direction of Cohen i.e., Cohen and Eaton Vance go up and down completely randomly.
Pair Corralation between Cohen and Eaton Vance
Considering the 90-day investment horizon Cohen is expected to generate 1.48 times less return on investment than Eaton Vance. In addition to that, Cohen is 1.13 times more volatile than Eaton Vance Enhanced. It trades about 0.07 of its total potential returns per unit of risk. Eaton Vance Enhanced is currently generating about 0.12 per unit of volatility. If you would invest 1,511 in Eaton Vance Enhanced on August 31, 2024 and sell it today you would earn a total of 838.00 from holding Eaton Vance Enhanced or generate 55.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen And Steers vs. Eaton Vance Enhanced
Performance |
| Timeline |
| Cohen And Steers |
| Eaton Vance Enhanced |
Cohen and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen and Eaton Vance
The main advantage of trading using opposite Cohen and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen 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.| Cohen vs. MFS Investment Grade | Cohen vs. Eaton Vance Municipal | Cohen vs. DTF Tax Free | Cohen vs. HUMANA INC |
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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 Stocks Directory module to find actively traded stocks across global markets.
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