Correlation Between Eaton Vance and Touchstone Ultra
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Touchstone Ultra 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 Touchstone Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Capital and Touchstone Ultra Short, you can compare the effects of market volatilities on Eaton Vance and Touchstone Ultra 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 Touchstone Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Touchstone Ultra.
Diversification Opportunities for Eaton Vance and Touchstone Ultra
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Touchstone is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Capital and Touchstone Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Ultra Short 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 Capital are associated (or correlated) with Touchstone Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Ultra Short has no effect on the direction of Eaton Vance i.e., Eaton Vance and Touchstone Ultra go up and down completely randomly.
Pair Corralation between Eaton Vance and Touchstone Ultra
Assuming the 90 days horizon Eaton Vance Capital is expected to generate 5.53 times more return on investment than Touchstone Ultra. However, Eaton Vance is 5.53 times more volatile than Touchstone Ultra Short. It trades about 0.13 of its potential returns per unit of risk. Touchstone Ultra Short is currently generating about 0.27 per unit of risk. If you would invest 267,062 in Eaton Vance Capital on September 15, 2024 and sell it today you would earn a total of 3,986 from holding Eaton Vance Capital or generate 1.49% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Eaton Vance Capital vs. Touchstone Ultra Short
Performance |
Timeline |
Eaton Vance Capital |
Touchstone Ultra Short |
Eaton Vance and Touchstone Ultra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eaton Vance and Touchstone Ultra
The main advantage of trading using opposite Eaton Vance and Touchstone Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Touchstone Ultra 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 Touchstone Ultra will offset losses from the drop in Touchstone Ultra's long position.Eaton Vance vs. Touchstone Ultra Short | Eaton Vance vs. Astor Longshort Fund | Eaton Vance vs. Delaware Investments Ultrashort | Eaton Vance vs. Easterly Snow Longshort |
Touchstone Ultra vs. Touchstone Small Cap | Touchstone Ultra vs. Touchstone Sands Capital | Touchstone Ultra vs. Mid Cap Growth | Touchstone Ultra vs. Mid Cap Growth |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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