Correlation Between XAI Octagon and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both XAI Octagon 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 XAI Octagon and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XAI Octagon Floating and Eaton Vance Tax, you can compare the effects of market volatilities on XAI Octagon 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 XAI Octagon with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of XAI Octagon and Eaton Vance.
Diversification Opportunities for XAI Octagon and Eaton Vance
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between XAI and Eaton is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding XAI Octagon Floating and Eaton Vance Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax and XAI Octagon 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 XAI Octagon Floating 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 Tax has no effect on the direction of XAI Octagon i.e., XAI Octagon and Eaton Vance go up and down completely randomly.
Pair Corralation between XAI Octagon and Eaton Vance
Given the investment horizon of 90 days XAI Octagon is expected to generate 1.29 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, XAI Octagon Floating is 2.25 times less risky than Eaton Vance. It trades about 0.11 of its potential returns per unit of risk. Eaton Vance Tax is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,460 in Eaton Vance Tax on September 3, 2024 and sell it today you would earn a total of 158.00 from holding Eaton Vance Tax or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XAI Octagon Floating vs. Eaton Vance Tax
Performance |
| Timeline |
| XAI Octagon Floating |
| Eaton Vance Tax |
XAI Octagon and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XAI Octagon and Eaton Vance
The main advantage of trading using opposite XAI Octagon and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XAI Octagon 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.| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
| Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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