Correlation Between Eaton Vance and Cushing Mlp

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

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

Diversification Opportunities for Eaton Vance and Cushing Mlp

0.61

Correlation Coefficient

Eaton Vance  Cushing Mlp

Poor diversification

The 3 months correlation between Eaton and Cushing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Cushing Mlp Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cushing Mlp Total 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 Tax are associated (or correlated) with Cushing Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cushing Mlp Total has no effect on the direction of Eaton Vance i.e., Eaton Vance and Cushing Mlp go up and down completely randomly.

Pair Corralation between Eaton Vance and Cushing Mlp

Considering the 90-day investment horizon Eaton Vance is expected to generate 1.29 times less return on investment than Cushing Mlp. In addition to that, Eaton Vance is 1.31 times more volatile than Cushing Mlp Total. It trades about 0.34 of its total potential returns per unit of risk. Cushing Mlp Total is currently generating about 0.58 per unit of volatility. If you would invest  4,229  in Cushing Mlp Total on July 3, 2024 and sell it today you would earn a total of  272.00  from holding Cushing Mlp Total or generate 6.43% return on investment over 90 days.

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

Eaton Vance Tax  vs.  Cushing Mlp Total

Eaton Vance Tax

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Tax are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly stable basic indicators, Eaton Vance is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Cushing Mlp Total

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cushing Mlp Total are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady basic indicators, Cushing Mlp may actually be approaching a critical reversion point that can send shares even higher in November 2024.

Pair Trading with Eaton Vance and Cushing Mlp

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

The idea behind Eaton Vance Tax and Cushing Mlp Total 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.

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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.