Correlation Between Wesmark Government and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Wesmark 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 Wesmark 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 Wesmark Government Bond and Eaton Vance Oregon, you can compare the effects of market volatilities on Wesmark 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 Wesmark Government with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesmark Government and Eaton Vance.
Diversification Opportunities for Wesmark Government and Eaton Vance
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wesmark and Eaton is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Government Bond and Eaton Vance Oregon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Oregon and Wesmark 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 Wesmark Government Bond 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 Oregon has no effect on the direction of Wesmark Government i.e., Wesmark Government and Eaton Vance go up and down completely randomly.
Pair Corralation between Wesmark Government and Eaton Vance
Assuming the 90 days horizon Wesmark Government is expected to generate 3.34 times less return on investment than Eaton Vance. In addition to that, Wesmark Government is 2.76 times more volatile than Eaton Vance Oregon. It trades about 0.06 of its total potential returns per unit of risk. Eaton Vance Oregon is currently generating about 0.55 per unit of volatility. If you would invest 797.00 in Eaton Vance Oregon on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Eaton Vance Oregon or generate 1.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wesmark Government Bond vs. Eaton Vance Oregon
Performance |
| Timeline |
| Wesmark Government Bond |
| Eaton Vance Oregon |
Wesmark Government and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesmark Government and Eaton Vance
The main advantage of trading using opposite Wesmark Government and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesmark 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.| Wesmark Government vs. SCOR PK | Wesmark Government vs. Morningstar Unconstrained Allocation | Wesmark Government vs. Via Renewables | Wesmark Government vs. Bondbloxx ETF Trust |
| Eaton Vance vs. Wesmark Government Bond | Eaton Vance vs. Wesmark Growth Fund | Eaton Vance vs. Wesmark Balanced Fund | Eaton Vance vs. Wesmark Small Pany |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |