Correlation Between Eaton Vance and Eaton Vance

Can any of the company-specific risk be diversified away by investing in both Eaton Vance 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 Eaton Vance and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eaton Vance Floating and Eaton Vance Tax Managed, you can compare the effects of market volatilities on Eaton Vance 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 Eaton Vance with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Eaton Vance.

Diversification Opportunities for Eaton Vance and Eaton Vance

0.59

Correlation Coefficient

Eaton Vance  Eaton Vance

Very weak diversification

The 3 months correlation between Eaton and Eaton is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating and Eaton Vance Tax Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Tax 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 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 Eaton Vance i.e., Eaton Vance and Eaton Vance go up and down completely randomly.

Pair Corralation between Eaton Vance and Eaton Vance

Considering the 90-day investment horizon Eaton Vance is expected to generate 2.03 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Eaton Vance Floating is 1.59 times less risky than Eaton Vance. It trades about 0.1 of its potential returns per unit of risk. Eaton Vance Tax Managed is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  809.00  in Eaton Vance Tax Managed on February 11, 2024 and sell it today you would earn a total of  21.00  from holding Eaton Vance Tax Managed or generate 2.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Eaton Vance Floating  vs.  Eaton Vance Tax Managed

Eaton Vance Floating

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Floating are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Eaton Vance Tax

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Tax Managed are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly unfluctuating basic indicators, Eaton Vance may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with Eaton Vance and Eaton Vance

The main advantage of trading using opposite Eaton Vance and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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.

The idea behind Eaton Vance Floating and Eaton Vance Tax Managed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.