Correlation Between Eaton Vance and Multimanager Lifestyle
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Multimanager Lifestyle 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 Multimanager Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Worldwide and Multimanager Lifestyle Moderate, you can compare the effects of market volatilities on Eaton Vance and Multimanager Lifestyle 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 Multimanager Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Multimanager Lifestyle.
Diversification Opportunities for Eaton Vance and Multimanager Lifestyle
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eaton and Multimanager is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Worldwide and Multimanager Lifestyle Moderat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multimanager Lifestyle 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 Worldwide are associated (or correlated) with Multimanager Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multimanager Lifestyle has no effect on the direction of Eaton Vance i.e., Eaton Vance and Multimanager Lifestyle go up and down completely randomly.
Pair Corralation between Eaton Vance and Multimanager Lifestyle
Assuming the 90 days horizon Eaton Vance Worldwide is expected to under-perform the Multimanager Lifestyle. In addition to that, Eaton Vance is 3.41 times more volatile than Multimanager Lifestyle Moderate. It trades about -0.01 of its total potential returns per unit of risk. Multimanager Lifestyle Moderate is currently generating about 0.28 per unit of volatility. If you would invest 1,243 in Multimanager Lifestyle Moderate on June 13, 2025 and sell it today you would earn a total of 62.00 from holding Multimanager Lifestyle Moderate or generate 4.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Worldwide vs. Multimanager Lifestyle Moderat
Performance |
| Timeline |
| Eaton Vance Worldwide |
| Multimanager Lifestyle |
Eaton Vance and Multimanager Lifestyle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Multimanager Lifestyle
The main advantage of trading using opposite Eaton Vance and Multimanager Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Multimanager Lifestyle 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 Multimanager Lifestyle will offset losses from the drop in Multimanager Lifestyle's long position.| Eaton Vance vs. Bmo In Retirement Fund | Eaton Vance vs. Fidelity Managed Retirement | Eaton Vance vs. Dimensional Retirement Income | Eaton Vance vs. Retirement Living Through |
| Multimanager Lifestyle vs. Rbc Short Duration | Multimanager Lifestyle vs. Fisher Fixed Income | Multimanager Lifestyle vs. Ab Select Equity | Multimanager Lifestyle vs. Sei Insti Mgd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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