Correlation Between Aam/himco Short and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Aam/himco Short 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 Aam/himco Short and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aamhimco Short Duration and Eaton Vance Multi Strategy, you can compare the effects of market volatilities on Aam/himco Short 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 Aam/himco Short with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam/himco Short and Eaton Vance.
Diversification Opportunities for Aam/himco Short and Eaton Vance
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aam/himco and Eaton is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Aamhimco Short Duration and Eaton Vance Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Multi and Aam/himco Short 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 Aamhimco Short Duration 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 Multi has no effect on the direction of Aam/himco Short i.e., Aam/himco Short and Eaton Vance go up and down completely randomly.
Pair Corralation between Aam/himco Short and Eaton Vance
Assuming the 90 days horizon Aam/himco Short is expected to generate 1.8 times less return on investment than Eaton Vance. But when comparing it to its historical volatility, Aamhimco Short Duration is 1.7 times less risky than Eaton Vance. It trades about 0.19 of its potential returns per unit of risk. Eaton Vance Multi Strategy is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 976.00 in Eaton Vance Multi Strategy on October 24, 2024 and sell it today you would earn a total of 16.00 from holding Eaton Vance Multi Strategy or generate 1.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Aamhimco Short Duration vs. Eaton Vance Multi Strategy
Performance |
Timeline |
Aamhimco Short Duration |
Eaton Vance Multi |
Aam/himco Short and Eaton Vance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aam/himco Short and Eaton Vance
The main advantage of trading using opposite Aam/himco Short and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam/himco Short 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.Aam/himco Short vs. Simt Real Estate | Aam/himco Short vs. Forum Real Estate | Aam/himco Short vs. Rreef Property Trust | Aam/himco Short vs. Texton Property |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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