Correlation Between Korea Closed and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Korea Closed 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 Korea Closed and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korea Closed and Eaton Vance Municipal, you can compare the effects of market volatilities on Korea Closed 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 Korea Closed with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korea Closed and Eaton Vance.
Diversification Opportunities for Korea Closed and Eaton Vance
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Korea and Eaton is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Korea Closed 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 Korea Closed 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 Korea Closed 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 Korea Closed i.e., Korea Closed and Eaton Vance go up and down completely randomly.
Pair Corralation between Korea Closed and Eaton Vance
Allowing for the 90-day total investment horizon Korea Closed is expected to generate 9.6 times more return on investment than Eaton Vance. However, Korea Closed is 9.6 times more volatile than Eaton Vance Municipal. It trades about 0.07 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about 0.0 per unit of risk. If you would invest 1,977 in Korea Closed on September 16, 2024 and sell it today you would earn a total of 33.00 from holding Korea Closed or generate 1.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Korea Closed vs. Eaton Vance Municipal
Performance |
Timeline |
Korea Closed |
Eaton Vance Municipal |
Korea Closed and Eaton Vance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Korea Closed and Eaton Vance
The main advantage of trading using opposite Korea Closed and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korea Closed 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.Korea Closed vs. MFS High Yield | Korea Closed vs. MFS High Income | Korea Closed vs. MFS Multimarket Income | Korea Closed vs. MFS Intermediate Income |
Eaton Vance vs. Vanguard Total Stock | Eaton Vance vs. Vanguard 500 Index | Eaton Vance vs. Vanguard Total Stock | Eaton Vance vs. Vanguard Total Stock |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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