Correlation Between Eaton Vance and Fidelity Series
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Fidelity Series 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 Eaton Vance and Fidelity Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Short and Fidelity Series Government, you can compare the effects of market volatilities on Eaton Vance and Fidelity Series 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 Eaton Vance with a short position of Fidelity Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Fidelity Series.
Diversification Opportunities for Eaton Vance and Fidelity Series
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Fidelity is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Short and Fidelity Series Government in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Series Gove and Eaton Vance 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 Eaton Vance Short are associated (or correlated) with Fidelity Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Series Gove has no effect on the direction of Eaton Vance i.e., Eaton Vance and Fidelity Series go up and down completely randomly.
Pair Corralation between Eaton Vance and Fidelity Series
Assuming the 90 days horizon Eaton Vance is expected to generate 4.92 times less return on investment than Fidelity Series. But when comparing it to its historical volatility, Eaton Vance Short is 1.74 times less risky than Fidelity Series. It trades about 0.1 of its potential returns per unit of risk. Fidelity Series Government is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 901.00 in Fidelity Series Government on November 29, 2024 and sell it today you would earn a total of 16.00 from holding Fidelity Series Government or generate 1.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Short vs. Fidelity Series Government
Performance |
| Timeline |
| Eaton Vance Short |
| Fidelity Series Gove |
Eaton Vance and Fidelity Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Fidelity Series
The main advantage of trading using opposite Eaton Vance and Fidelity Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Fidelity Series 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 Fidelity Series will offset losses from the drop in Fidelity Series' long position.| Eaton Vance vs. Advent Claymore Convertible | Eaton Vance vs. Fidelity Vertible Securities | Eaton Vance vs. Forum Funds | Eaton Vance vs. Invesco Vertible Securities |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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