Correlation Between Bny Mellon and Eaton Vance

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

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

Diversification Opportunities for Bny Mellon and Eaton Vance

0.45

Correlation Coefficient

Bny Mellon  Eaton Vance

Very weak diversification

The 3 months correlation between Bny and Eaton is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Bny Mellon Municipalome and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National and Bny Mellon 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 Bny Mellon Municipalome 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 National has no effect on the direction of Bny Mellon i.e., Bny Mellon and Eaton Vance go up and down completely randomly.

Pair Corralation between Bny Mellon and Eaton Vance

Considering the 90-day investment horizon Bny Mellon Municipalome is expected to generate 1.68 times more return on investment than Eaton Vance. However, Bny Mellon is 1.68 times more volatile than Eaton Vance National. It trades about 0.25 of its potential returns per unit of risk. Eaton Vance National is currently generating about 0.03 per unit of risk. If you would invest  716.00  in Bny Mellon Municipalome on September 5, 2024 and sell it today you would earn a total of  34.00  from holding Bny Mellon Municipalome or generate 4.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Bny Mellon Municipalome  vs.  Eaton Vance National

Bny Mellon Municipalome

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bny Mellon Municipalome are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, Bny Mellon is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Eaton Vance National

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance National are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic 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.

Pair Trading with Bny Mellon and Eaton Vance

The main advantage of trading using opposite Bny Mellon and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bny Mellon 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 Bny Mellon Municipalome and Eaton Vance National 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.