Correlation Between Angel Oak and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Angel Oak 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 Angel Oak and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Eaton Vance Income, you can compare the effects of market volatilities on Angel Oak 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 Angel Oak with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Eaton Vance.
Diversification Opportunities for Angel Oak and Eaton Vance
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Angel and Eaton is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Eaton Vance Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Income and Angel Oak 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 Angel Oak Financial 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 Income has no effect on the direction of Angel Oak i.e., Angel Oak and Eaton Vance go up and down completely randomly.
Pair Corralation between Angel Oak and Eaton Vance
Assuming the 90 days horizon Angel Oak is expected to generate 2.45 times less return on investment than Eaton Vance. In addition to that, Angel Oak is 1.09 times more volatile than Eaton Vance Income. It trades about 0.07 of its total potential returns per unit of risk. Eaton Vance Income is currently generating about 0.18 per unit of volatility. If you would invest 481.00 in Eaton Vance Income on September 4, 2024 and sell it today you would earn a total of 44.00 from holding Eaton Vance Income or generate 9.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Angel Oak Financial vs. Eaton Vance Income
Performance |
| Timeline |
| Angel Oak Financial |
| Eaton Vance Income |
Angel Oak and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Eaton Vance
The main advantage of trading using opposite Angel Oak and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak 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.| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Mbf |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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