Correlation Between Eaton Vance and Stock Index
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Stock Index 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 Stock Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Risk and Stock Index Fund, you can compare the effects of market volatilities on Eaton Vance and Stock Index 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 Stock Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Stock Index.
Diversification Opportunities for Eaton Vance and Stock Index
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Stock is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Risk and Stock Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Index Fund 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 Risk are associated (or correlated) with Stock Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Index Fund has no effect on the direction of Eaton Vance i.e., Eaton Vance and Stock Index go up and down completely randomly.
Pair Corralation between Eaton Vance and Stock Index
Considering the 90-day investment horizon Eaton Vance Risk is expected to under-perform the Stock Index. But the fund apears to be less risky and, when comparing its historical volatility, Eaton Vance Risk is 1.53 times less risky than Stock Index. The fund trades about -0.01 of its potential returns per unit of risk. The Stock Index Fund is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,317 in Stock Index Fund on October 23, 2024 and sell it today you would earn a total of 18.00 from holding Stock Index Fund or generate 0.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Eaton Vance Risk vs. Stock Index Fund
Performance |
Timeline |
Eaton Vance Risk |
Stock Index Fund |
Eaton Vance and Stock Index Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eaton Vance and Stock Index
The main advantage of trading using opposite Eaton Vance and Stock Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Stock Index 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 Stock Index will offset losses from the drop in Stock Index's long position.Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax Managed | Eaton Vance vs. Eaton Vance Tax |
Stock Index vs. Value Fund Value | Stock Index vs. Growth Fund Growth | Stock Index vs. International Equity Fund | Stock Index vs. Short Term Bond Fund |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |