Correlation Between Mfs Emerging and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Mfs Emerging 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 Mfs Emerging and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mfs Emerging Markets and Eaton Vance Emerging, you can compare the effects of market volatilities on Mfs Emerging 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 Mfs Emerging with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mfs Emerging and Eaton Vance.
Diversification Opportunities for Mfs Emerging and Eaton Vance
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mfs and Eaton is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mfs Emerging Markets and Eaton Vance Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Emerging and Mfs Emerging 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 Mfs Emerging Markets 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 Emerging has no effect on the direction of Mfs Emerging i.e., Mfs Emerging and Eaton Vance go up and down completely randomly.
Pair Corralation between Mfs Emerging and Eaton Vance
Assuming the 90 days horizon Mfs Emerging Markets is expected to under-perform the Eaton Vance. In addition to that, Mfs Emerging is 1.62 times more volatile than Eaton Vance Emerging. It trades about -0.05 of its total potential returns per unit of risk. Eaton Vance Emerging is currently generating about 0.33 per unit of volatility. If you would invest 745.00 in Eaton Vance Emerging on February 11, 2024 and sell it today you would earn a total of 41.00 from holding Eaton Vance Emerging or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Mfs Emerging Markets vs. Eaton Vance Emerging
Performance |
| Timeline |
| Mfs Emerging Markets |
| Eaton Vance Emerging |
Mfs Emerging and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mfs Emerging and Eaton Vance
The main advantage of trading using opposite Mfs Emerging and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mfs Emerging 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.| Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor | Mfs Emerging vs. Mfs Prudent Investor |
| Eaton Vance vs. Clarion Partners Real | Eaton Vance vs. Siit Intermediate Duration | Eaton Vance vs. Franklin High Yield | Eaton Vance vs. Delek Group |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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