Correlation Between Oakhurst Short and Eaton Vance

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

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

Diversification Opportunities for Oakhurst Short and Eaton Vance

-0.03

Correlation Coefficient

Oakhurst Short  Eaton Vance

Good diversification

The 3 months correlation between Oakhurst and Eaton is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Oakhurst Short Duration and Eaton Vance Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Small and Oakhurst Short 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 Oakhurst Short Duration 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 Small has no effect on the direction of Oakhurst Short i.e., Oakhurst Short and Eaton Vance go up and down completely randomly.

Pair Corralation between Oakhurst Short and Eaton Vance

Assuming the 90 days horizon Oakhurst Short Duration is expected to generate 0.18 times more return on investment than Eaton Vance. However, Oakhurst Short Duration is 5.48 times less risky than Eaton Vance. It trades about 0.16 of its potential returns per unit of risk. Eaton Vance Small Cap is currently generating about -0.09 per unit of risk. If you would invest  878.00  in Oakhurst Short Duration on December 21, 2024 and sell it today you would earn a total of  14.00  from holding Oakhurst Short Duration or generate 1.59% return on investment over 90 days.

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

Oakhurst Short Duration  vs.  Eaton Vance Small Cap

Oakhurst Short Duration

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Oakhurst Short Duration are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, Oakhurst Short is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eaton Vance Small

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Eaton Vance is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Oakhurst Short and Eaton Vance

The main advantage of trading using opposite Oakhurst Short and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oakhurst Short 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 Oakhurst Short Duration and Eaton Vance Small Cap 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.