Correlation Between Federated Investors and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Federated Investors 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 Federated Investors and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Investors B and Eaton Vance National, you can compare the effects of market volatilities on Federated Investors 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 Federated Investors with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Investors and Eaton Vance.
Diversification Opportunities for Federated Investors and Eaton Vance
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Federated and Eaton is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Federated Investors B and Eaton Vance National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance National and Federated Investors 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 Federated Investors B 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 National has no effect on the direction of Federated Investors i.e., Federated Investors and Eaton Vance go up and down completely randomly.
Pair Corralation between Federated Investors and Eaton Vance
Considering the 90-day investment horizon Federated Investors B is expected to generate 2.07 times more return on investment than Eaton Vance. However, Federated Investors is 2.07 times more volatile than Eaton Vance National. It trades about 0.06 of its potential returns per unit of risk. Eaton Vance National is currently generating about -0.08 per unit of risk. If you would invest 4,005 in Federated Investors B on March 24, 2025 and sell it today you would earn a total of 242.00 from holding Federated Investors B or generate 6.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Investors B vs. Eaton Vance National
Performance |
| Timeline |
| Federated Investors |
| Eaton Vance National |
Federated Investors and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Investors and Eaton Vance
The main advantage of trading using opposite Federated Investors and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Investors 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.| Federated Investors vs. Federated Premier Municipal | Federated Investors vs. Blackrock Muniyield | Federated Investors vs. Diamond Hill Investment | Federated Investors vs. NXG NextGen Infrastructure |
| Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Federated Premier Municipal |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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