Correlation Between Eaton Vance and PIMCO Intermediate
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and PIMCO Intermediate 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 PIMCO Intermediate 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 PIMCO Intermediate Municipal, you can compare the effects of market volatilities on Eaton Vance and PIMCO Intermediate 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 PIMCO Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and PIMCO Intermediate.
Diversification Opportunities for Eaton Vance and PIMCO Intermediate
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and PIMCO is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and PIMCO Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO Intermediate 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 PIMCO Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO Intermediate has no effect on the direction of Eaton Vance i.e., Eaton Vance and PIMCO Intermediate go up and down completely randomly.
Pair Corralation between Eaton Vance and PIMCO Intermediate
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to under-perform the PIMCO Intermediate. In addition to that, Eaton Vance is 4.92 times more volatile than PIMCO Intermediate Municipal. It trades about -0.11 of its total potential returns per unit of risk. PIMCO Intermediate Municipal is currently generating about 0.01 per unit of volatility. If you would invest 5,130 in PIMCO Intermediate Municipal on December 27, 2024 and sell it today you would earn a total of 6.00 from holding PIMCO Intermediate Municipal or generate 0.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eaton Vance Enhanced vs. PIMCO Intermediate Municipal
Performance |
Timeline |
Eaton Vance Enhanced |
PIMCO Intermediate |
Eaton Vance and PIMCO Intermediate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eaton Vance and PIMCO Intermediate
The main advantage of trading using opposite Eaton Vance and PIMCO Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, PIMCO Intermediate 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 PIMCO Intermediate will offset losses from the drop in PIMCO Intermediate'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 |
PIMCO Intermediate vs. PIMCO Short Term | PIMCO Intermediate vs. VanEck Intermediate Muni | PIMCO Intermediate vs. VanEck Long Muni | PIMCO Intermediate vs. VanEck Short Muni |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |