Correlation Between Freedom Holding and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Freedom Holding 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 Freedom Holding and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Holding Corp and Eaton Vance Municipal, you can compare the effects of market volatilities on Freedom Holding 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 Freedom Holding with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Eaton Vance.
Diversification Opportunities for Freedom Holding and Eaton Vance
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and Eaton is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and Eaton Vance Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Municipal and Freedom Holding 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 Freedom Holding Corp 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 Municipal has no effect on the direction of Freedom Holding i.e., Freedom Holding and Eaton Vance go up and down completely randomly.
Pair Corralation between Freedom Holding and Eaton Vance
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 4.74 times more return on investment than Eaton Vance. However, Freedom Holding is 4.74 times more volatile than Eaton Vance Municipal. It trades about 0.27 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about -0.15 per unit of risk. If you would invest 11,810 in Freedom Holding Corp on September 25, 2024 and sell it today you would earn a total of 1,082 from holding Freedom Holding Corp or generate 9.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Freedom Holding Corp vs. Eaton Vance Municipal
Performance |
Timeline |
Freedom Holding Corp |
Eaton Vance Municipal |
Freedom Holding and Eaton Vance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freedom Holding and Eaton Vance
The main advantage of trading using opposite Freedom Holding and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding 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.Freedom Holding vs. Visa Class A | Freedom Holding vs. Diamond Hill Investment | Freedom Holding vs. Distoken Acquisition | Freedom Holding vs. AllianceBernstein Holding LP |
Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Federated Premier Municipal | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. Eaton Vance National |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |