Correlation Between Eaton Vance and Blackrock Muniholdings
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Blackrock Muniholdings 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 Blackrock Muniholdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax and Blackrock Muniholdings Closed, you can compare the effects of market volatilities on Eaton Vance and Blackrock Muniholdings 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 Blackrock Muniholdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Blackrock Muniholdings.
Diversification Opportunities for Eaton Vance and Blackrock Muniholdings
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Blackrock is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Blackrock Muniholdings Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Muniholdings 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 Tax are associated (or correlated) with Blackrock Muniholdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Muniholdings has no effect on the direction of Eaton Vance i.e., Eaton Vance and Blackrock Muniholdings go up and down completely randomly.
Pair Corralation between Eaton Vance and Blackrock Muniholdings
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 0.65 times more return on investment than Blackrock Muniholdings. However, Eaton Vance Tax is 1.53 times less risky than Blackrock Muniholdings. It trades about 0.29 of its potential returns per unit of risk. Blackrock Muniholdings Closed is currently generating about 0.01 per unit of risk. If you would invest 1,390 in Eaton Vance Tax on September 12, 2024 and sell it today you would earn a total of 119.00 from holding Eaton Vance Tax or generate 8.56% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eaton Vance Tax vs. Blackrock Muniholdings Closed
Performance |
Timeline |
Eaton Vance Tax |
Blackrock Muniholdings |
Eaton Vance and Blackrock Muniholdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eaton Vance and Blackrock Muniholdings
The main advantage of trading using opposite Eaton Vance and Blackrock Muniholdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Blackrock Muniholdings 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 Blackrock Muniholdings will offset losses from the drop in Blackrock Muniholdings' long position.Eaton Vance vs. Brookfield Real Assets | Eaton Vance vs. Guggenheim Strategic Opportunities | Eaton Vance vs. Cornerstone Strategic Return | Eaton Vance vs. Cornerstone Strategic Value |
Blackrock Muniholdings vs. John Hancock Income | Blackrock Muniholdings vs. MFS High Income | Blackrock Muniholdings vs. MFS Investment Grade | Blackrock Muniholdings vs. DTF Tax Free |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |