Eaton Vance National Fund Volatility

XEOTX Fund  USD 17.95  0.04  0.16%   
Eaton Vance National secures Sharpe Ratio (or Efficiency) of -0.0156, which denotes the fund had a -0.0156% return per unit of risk over the last 3 months. Eaton Vance National exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please confirm Eaton Vance's Variance of 0.0686, standard deviation of 0.2619, and Mean Deviation of 0.1604 to check the risk estimate we provide.
  
Eaton Vance Mutual Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Eaton daily returns, and it is calculated using variance and standard deviation. We also use Eaton's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Eaton Vance volatility.
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Eaton Vance can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Eaton Vance at lower prices. For example, an investor can purchase Eaton stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Eaton Vance's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Eaton Vance Market Sensitivity And Downside Risk

Eaton Vance's beta coefficient measures the volatility of Eaton mutual fund compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Eaton mutual fund's returns against your selected market. In other words, Eaton Vance's beta of 0.11 provides an investor with an approximation of how much risk Eaton Vance mutual fund can potentially add to one of your existing portfolios. Eaton Vance National exhibits very low volatility with skewness of -1.45 and kurtosis of 6.46. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Eaton Vance's mutual fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Eaton Vance's mutual fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Eaton Vance National Demand Trend
Check current 90 days Eaton Vance correlation with market (NYSE Composite)

Eaton Beta

    
  0.11  
Eaton standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  0.26  
It is essential to understand the difference between upside risk (as represented by Eaton Vance's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Eaton Vance's daily returns or price. Since the actual investment returns on holding a position in eaton mutual fund tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Eaton Vance.

Eaton Vance National Mutual Fund Volatility Analysis

Volatility refers to the frequency at which Eaton Vance fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Eaton Vance's price changes. Investors will then calculate the volatility of Eaton Vance's mutual fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A mutual fund with relatively stable price changes has low volatility. A highly volatile fund is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Eaton Vance's volatility:

Historical Volatility

This type of fund volatility measures Eaton Vance's fluctuations based on previous trends. It's commonly used to predict Eaton Vance's future behavior based on its past. However, it cannot conclusively determine the future direction of the mutual fund.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Eaton Vance's current market price. This means that the fund will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Eaton Vance's to be redeemed at a future date.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Eaton Vance National Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.

Eaton Vance Projected Return Density Against Market

Assuming the 90 days horizon Eaton Vance has a beta of 0.1143 . This entails as returns on the market go up, Eaton Vance average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Eaton Vance National will be expected to be much smaller as well.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Eaton Vance or Eaton sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Eaton Vance's price will be affected by overall mutual fund market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Eaton fund's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Eaton Vance National has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming NYSE Composite.
   Predicted Return Density   
       Returns  
Eaton Vance's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how eaton mutual fund's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an Eaton Vance Price Volatility?

Several factors can influence a fund's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Eaton Vance Mutual Fund Risk Measures

Assuming the 90 days horizon the coefficient of variation of Eaton Vance is -6395.99. The daily returns are distributed with a variance of 0.07 and standard deviation of 0.26. The mean deviation of Eaton Vance National is currently at 0.16. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.56
α
Alpha over NYSE Composite
-0.03
β
Beta against NYSE Composite0.11
σ
Overall volatility
0.26
Ir
Information ratio -0.53

Eaton Vance Mutual Fund Return Volatility

Eaton Vance historical daily return volatility represents how much of Eaton Vance fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.2619% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.573% volatility on return distribution over the 90 days horizon.
 Performance 
       Timeline  

About Eaton Vance Volatility

Volatility is a rate at which the price of Eaton Vance or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Eaton Vance may increase or decrease. In other words, similar to Eaton's beta indicator, it measures the risk of Eaton Vance and helps estimate the fluctuations that may happen in a short period of time. So if prices of Eaton Vance fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.

3 ways to utilize Eaton Vance's volatility to invest better

Higher Eaton Vance's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Eaton Vance National fund is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Eaton Vance National fund volatility can provide helpful information for making investment decisions in the following ways:
  • Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Eaton Vance National investment. A higher volatility means higher risk and potentially larger changes in value.
  • Identifying Opportunities: High volatility in Eaton Vance's fund can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
  • Diversification: Understanding how the volatility of Eaton Vance's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Remember it's essential to remember that stock volatility is just one of many factors to consider when making investment decisions, and it should be used in conjunction with other fundamental and technical analysis tools.

Eaton Vance Investment Opportunity

NYSE Composite has a standard deviation of returns of 0.57 and is 2.19 times more volatile than Eaton Vance National. 2 percent of all equities and portfolios are less risky than Eaton Vance. You can use Eaton Vance National to protect your portfolios against small market fluctuations. The mutual fund experiences a normal downward trend and little activity. Check odds of Eaton Vance to be traded at $18.3 in 90 days.

Modest diversification

The correlation between Eaton Vance National and NYA is 0.25 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and NYA in the same portfolio, assuming nothing else is changed.

Eaton Vance Additional Risk Indicators

The analysis of Eaton Vance's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Eaton Vance's investment and either accepting that risk or mitigating it. Along with some common measures of Eaton Vance mutual fund's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Eaton Vance Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Eaton Vance as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Eaton Vance's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Eaton Vance's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Eaton Vance National.
Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Eaton Vance National. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.

Complementary Tools for Eaton Mutual Fund analysis

When running Eaton Vance's price analysis, check to measure Eaton Vance's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Eaton Vance is operating at the current time. Most of Eaton Vance's value examination focuses on studying past and present price action to predict the probability of Eaton Vance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Eaton Vance's price. Additionally, you may evaluate how the addition of Eaton Vance to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Eaton Vance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Eaton Vance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Eaton Vance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.