Correlation Between Eaton Vance and Invesco Pennsylvania

Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Invesco Pennsylvania 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 Invesco Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eaton Vance National and Invesco Pennsylvania Value, you can compare the effects of market volatilities on Eaton Vance and Invesco Pennsylvania 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 Invesco Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Invesco Pennsylvania.

Diversification Opportunities for Eaton Vance and Invesco Pennsylvania

-0.08

Correlation Coefficient

Eaton Vance  Invesco Pennsylvania

Good diversification

The 3 months correlation between Eaton and Invesco is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Invesco Pennsylvania Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Pennsylvania 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 National are associated (or correlated) with Invesco Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Pennsylvania has no effect on the direction of Eaton Vance i.e., Eaton Vance and Invesco Pennsylvania go up and down completely randomly.

Pair Corralation between Eaton Vance and Invesco Pennsylvania

Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Invesco Pennsylvania. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 1.1 times less risky than Invesco Pennsylvania. The stock trades about -0.08 of its potential returns per unit of risk. The Invesco Pennsylvania Value is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  974.00  in Invesco Pennsylvania Value on May 6, 2025 and sell it today you would earn a total of  26.00  from holding Invesco Pennsylvania Value or generate 2.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Eaton Vance National  vs.  Invesco Pennsylvania Value

Eaton Vance National

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance National has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Invesco Pennsylvania

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Pennsylvania Value are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Invesco Pennsylvania is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Eaton Vance and Invesco Pennsylvania

The main advantage of trading using opposite Eaton Vance and Invesco Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Invesco Pennsylvania 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 Invesco Pennsylvania will offset losses from the drop in Invesco Pennsylvania's long position.

The idea behind Eaton Vance National and Invesco Pennsylvania Value pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.