Correlation Between Munivest Fund and Eaton Vance

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

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

Diversification Opportunities for Munivest Fund and Eaton Vance

-0.09

Correlation Coefficient

Munivest Fund  Eaton Vance

Good diversification

The 3 months correlation between Munivest and Eaton is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Munivest Fund and Eaton Vance Risk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Risk and Munivest Fund 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 Munivest Fund 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 Risk has no effect on the direction of Munivest Fund i.e., Munivest Fund and Eaton Vance go up and down completely randomly.

Pair Corralation between Munivest Fund and Eaton Vance

Considering the 90-day investment horizon Munivest Fund is expected to under-perform the Eaton Vance. In addition to that, Munivest Fund is 1.1 times more volatile than Eaton Vance Risk. It trades about -0.08 of its total potential returns per unit of risk. Eaton Vance Risk is currently generating about 0.12 per unit of volatility. If you would invest  893.00  in Eaton Vance Risk on September 14, 2024 and sell it today you would earn a total of  42.00  from holding Eaton Vance Risk or generate 4.7% return on investment over 90 days.

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

Munivest Fund  vs.  Eaton Vance Risk

Munivest Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Munivest Fund has generated negative risk-adjusted returns adding no value to fund investors. Despite nearly stable basic indicators, Munivest Fund is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Eaton Vance Risk

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Risk are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Even with relatively steady basic indicators, Eaton Vance is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Munivest Fund and Eaton Vance

The main advantage of trading using opposite Munivest Fund and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Munivest Fund 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 Munivest Fund and Eaton Vance Risk 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.