Correlation Between Eaton Vance and Eaton Vance

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

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

Diversification Opportunities for Eaton Vance and Eaton Vance

0.13

Correlation Coefficient

Eaton Vance  Eaton Vance

Average diversification

The 3 months correlation between Eaton and Eaton is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Worldwide and Eaton Vance Mbf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Mbf 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 Worldwide 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 Mbf has no effect on the direction of Eaton Vance i.e., Eaton Vance and Eaton Vance go up and down completely randomly.

Pair Corralation between Eaton Vance and Eaton Vance

Assuming the 90 days horizon Eaton Vance is expected to generate 2.63 times less return on investment than Eaton Vance. In addition to that, Eaton Vance is 1.18 times more volatile than Eaton Vance Mbf. It trades about 0.02 of its total potential returns per unit of risk. Eaton Vance Mbf is currently generating about 0.05 per unit of volatility. If you would invest  924.00  in Eaton Vance Mbf on September 30, 2024 and sell it today you would earn a total of  102.00  from holding Eaton Vance Mbf or generate 11.04% return on investment over 90 days.

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

Eaton Vance Worldwide  vs.  Eaton Vance Mbf

Eaton Vance Worldwide

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance Worldwide has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Eaton Vance Mbf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance Mbf has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy forward indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Eaton Vance and Eaton Vance

The main advantage of trading using opposite Eaton Vance and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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 Eaton Vance Worldwide and Eaton Vance Mbf 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.