Correlation Between Eaton Vance and American Mutual
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and American Mutual 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 Eaton Vance and American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Large Cap and American Mutual Fund, you can compare the effects of market volatilities on Eaton Vance and American Mutual 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 Eaton Vance with a short position of American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and American Mutual.
Diversification Opportunities for Eaton Vance and American Mutual
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eaton and American is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Large Cap and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual and Eaton Vance 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 Eaton Vance Large Cap are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Eaton Vance i.e., Eaton Vance and American Mutual go up and down completely randomly.
Pair Corralation between Eaton Vance and American Mutual
Assuming the 90 days horizon Eaton Vance Large Cap is expected to generate 1.07 times more return on investment than American Mutual. However, Eaton Vance is 1.07 times more volatile than American Mutual Fund. It trades about 0.0 of its potential returns per unit of risk. American Mutual Fund is currently generating about -0.07 per unit of risk. If you would invest 2,504 in Eaton Vance Large Cap on January 25, 2024 and sell it today you would lose (2.00) from holding Eaton Vance Large Cap or give up 0.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Eaton Vance Large Cap vs. American Mutual Fund
Performance |
Timeline |
Eaton Vance Large |
American Mutual |
Eaton Vance and American Mutual Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eaton Vance and American Mutual
The main advantage of trading using opposite Eaton Vance and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.Eaton Vance vs. Edgewood Growth Fund | Eaton Vance vs. Hartford Schroders Emerging | Eaton Vance vs. HUMANA INC | Eaton Vance vs. Aquagold International |
American Mutual vs. Edgewood Growth Fund | American Mutual vs. Hartford Schroders Emerging | American Mutual vs. HUMANA INC | American Mutual vs. Aquagold International |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |