Correlation Between Eaton Vance and Atac Inflation

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

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

Diversification Opportunities for Eaton Vance and Atac Inflation

0.14

Correlation Coefficient

Eaton Vance  Atac Inflation

Average diversification

The 3 months correlation between Eaton and Atac is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax Managed and Atac Inflation Rotation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atac Inflation Rotation 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 Tax Managed are associated (or correlated) with Atac Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atac Inflation Rotation has no effect on the direction of Eaton Vance i.e., Eaton Vance and Atac Inflation go up and down completely randomly.

Pair Corralation between Eaton Vance and Atac Inflation

Assuming the 90 days horizon Eaton Vance Tax Managed is expected to under-perform the Atac Inflation. In addition to that, Eaton Vance is 1.43 times more volatile than Atac Inflation Rotation. It trades about -0.11 of its total potential returns per unit of risk. Atac Inflation Rotation is currently generating about 0.01 per unit of volatility. If you would invest  3,281  in Atac Inflation Rotation on December 20, 2024 and sell it today you would earn a total of  9.00  from holding Atac Inflation Rotation or generate 0.27% return on investment over 90 days.

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

Eaton Vance Tax Managed  vs.  Atac Inflation Rotation

Eaton Vance Tax

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Tax Managed has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Atac Inflation Rotation

Risk-Adjusted Performance

Weak

Over the last 90 days Atac Inflation Rotation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Atac Inflation is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eaton Vance and Atac Inflation

The main advantage of trading using opposite Eaton Vance and Atac Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Atac Inflation 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 Atac Inflation will offset losses from the drop in Atac Inflation's long position.

The idea behind Eaton Vance Tax Managed and Atac Inflation Rotation 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.