Correlation Between Eaton Vance and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Franklin FTSE 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 Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Enhanced and Franklin FTSE Japan, you can compare the effects of market volatilities on Eaton Vance and Franklin FTSE 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 Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Franklin FTSE.
Diversification Opportunities for Eaton Vance and Franklin FTSE
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and Franklin is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and Franklin FTSE Japan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Japan 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 Enhanced are associated (or correlated) with Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Japan has no effect on the direction of Eaton Vance i.e., Eaton Vance and Franklin FTSE go up and down completely randomly.
Pair Corralation between Eaton Vance and Franklin FTSE
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to under-perform the Franklin FTSE. In addition to that, Eaton Vance is 1.14 times more volatile than Franklin FTSE Japan. It trades about -0.16 of its total potential returns per unit of risk. Franklin FTSE Japan is currently generating about 0.06 per unit of volatility. If you would invest 2,860 in Franklin FTSE Japan on December 28, 2024 and sell it today you would earn a total of 105.00 from holding Franklin FTSE Japan or generate 3.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Eaton Vance Enhanced vs. Franklin FTSE Japan
Performance |
Timeline |
Eaton Vance Enhanced |
Franklin FTSE Japan |
Eaton Vance and Franklin FTSE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eaton Vance and Franklin FTSE
The main advantage of trading using opposite Eaton Vance and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Franklin FTSE 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 Franklin FTSE will offset losses from the drop in Franklin FTSE's long position.Eaton Vance vs. Columbia Seligman Premium | Eaton Vance vs. BlackRock Utility Infrastructure | Eaton Vance vs. BlackRock Health Sciences | Eaton Vance vs. BlackRock Science Tech |
Franklin FTSE vs. JPMorgan BetaBuilders Japan | Franklin FTSE vs. Franklin FTSE South | Franklin FTSE vs. Franklin FTSE United | Franklin FTSE vs. Franklin FTSE China |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Stocks Directory Find actively traded stocks across global markets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |