Correlation Between Wesmark Balanced and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Wesmark Balanced 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 Balanced 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 Balanced Fund and Eaton Vance Oregon, you can compare the effects of market volatilities on Wesmark Balanced 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 Balanced with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesmark Balanced and Eaton Vance.
Diversification Opportunities for Wesmark Balanced and Eaton Vance
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wesmark and Eaton is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Balanced Fund 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 Balanced 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 Balanced 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 Oregon has no effect on the direction of Wesmark Balanced i.e., Wesmark Balanced and Eaton Vance go up and down completely randomly.
Pair Corralation between Wesmark Balanced and Eaton Vance
Assuming the 90 days horizon Wesmark Balanced Fund is expected to generate 1.91 times more return on investment than Eaton Vance. However, Wesmark Balanced is 1.91 times more volatile than Eaton Vance Oregon. It trades about 0.16 of its potential returns per unit of risk. Eaton Vance Oregon is currently generating about -0.03 per unit of risk. If you would invest 1,307 in Wesmark Balanced Fund on October 21, 2024 and sell it today you would earn a total of 14.00 from holding Wesmark Balanced Fund or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesmark Balanced Fund vs. Eaton Vance Oregon
Performance |
| Timeline |
| Wesmark Balanced |
| Eaton Vance Oregon |
Wesmark Balanced and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesmark Balanced and Eaton Vance
The main advantage of trading using opposite Wesmark Balanced and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesmark Balanced 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 Balanced vs. Wesmark Growth Fund | Wesmark Balanced vs. Wesmark Government Bond | Wesmark Balanced vs. Wesmark Small Pany | Wesmark Balanced vs. Wesmark West Virginia |
| Eaton Vance vs. Eaton Vance Arizona | Eaton Vance vs. Eaton Vance Virginia | Eaton Vance vs. Eaton Vance Georgia | Eaton Vance vs. Eaton Vance Balanced |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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