Correlation Between Eaton Vance and Kkr Income

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

By analyzing existing cross correlation between Eaton Vance Senior and Kkr Income Opportunities, you can compare the effects of market volatilities on Eaton Vance and Kkr Income 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 Kkr Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Kkr Income.

Diversification Opportunities for Eaton Vance and Kkr Income

0.3

Correlation Coefficient

Eaton Vance  Kkr Income

Weak diversification

The 3 months correlation between Eaton and Kkr is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Kkr Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Income Opportunities 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 Senior are associated (or correlated) with Kkr Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Income Opportunities has no effect on the direction of Eaton Vance i.e., Eaton Vance and Kkr Income go up and down completely randomly.

Pair Corralation between Eaton Vance and Kkr Income

Considering the 90-day investment horizon Eaton Vance Senior is expected to generate 0.72 times more return on investment than Kkr Income. However, Eaton Vance Senior is 1.4 times less risky than Kkr Income. It trades about -0.08 of its potential returns per unit of risk. Kkr Income Opportunities is currently generating about -0.09 per unit of risk. If you would invest  603.00  in Eaton Vance Senior on December 26, 2024 and sell it today you would lose (13.00) from holding Eaton Vance Senior or give up 2.16% of portfolio value over 90 days.

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

Eaton Vance Senior  vs.  Kkr Income Opportunities

Eaton Vance Senior

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Senior has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Kkr Income Opportunities

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kkr Income Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy forward indicators, Kkr Income 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 Kkr Income

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

The idea behind Eaton Vance Senior and Kkr Income Opportunities 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.