Correlation Between Aam Select and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Aam Select 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 Select and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aam Select Income and Eaton Vance Stock, you can compare the effects of market volatilities on Aam Select 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 Select with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aam Select and Eaton Vance.
Diversification Opportunities for Aam Select and Eaton Vance
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aam and Eaton is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aam Select Income and Eaton Vance Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Stock and Aam Select 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 Aam Select Income 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 Stock has no effect on the direction of Aam Select i.e., Aam Select and Eaton Vance go up and down completely randomly.
Pair Corralation between Aam Select and Eaton Vance
Assuming the 90 days horizon Aam Select Income is expected to generate 0.22 times more return on investment than Eaton Vance. However, Aam Select Income is 4.46 times less risky than Eaton Vance. It trades about 0.03 of its potential returns per unit of risk. Eaton Vance Stock is currently generating about -0.01 per unit of risk. If you would invest 896.00 in Aam Select Income on September 26, 2024 and sell it today you would earn a total of 10.00 from holding Aam Select Income or generate 1.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 99.21% |
Values | Daily Returns |
Aam Select Income vs. Eaton Vance Stock
Performance |
Timeline |
Aam Select Income |
Eaton Vance Stock |
Aam Select and Eaton Vance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aam Select and Eaton Vance
The main advantage of trading using opposite Aam Select and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aam Select 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 Select vs. Aamhimco Short Duration | Aam Select vs. Aamhimco Short Duration | Aam Select vs. Aamhimco Short Duration | Aam Select vs. Aambahl Gaynor Income |
Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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