Correlation Between Abrdn Emerging and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Abrdn Emerging 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 Abrdn Emerging and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abrdn Emerging Markets and Eaton Vance Senior, you can compare the effects of market volatilities on Abrdn Emerging 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 Abrdn Emerging with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abrdn Emerging and Eaton Vance.
Diversification Opportunities for Abrdn Emerging and Eaton Vance
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Abrdn and Eaton is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Abrdn Emerging Markets and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior and Abrdn Emerging 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 Abrdn Emerging Markets 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 Senior has no effect on the direction of Abrdn Emerging i.e., Abrdn Emerging and Eaton Vance go up and down completely randomly.
Pair Corralation between Abrdn Emerging and Eaton Vance
Considering the 90-day investment horizon Abrdn Emerging Markets is expected to under-perform the Eaton Vance. In addition to that, Abrdn Emerging is 2.68 times more volatile than Eaton Vance Senior. It trades about -0.17 of its total potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.19 per unit of volatility. If you would invest 615.00 in Eaton Vance Senior on August 30, 2024 and sell it today you would earn a total of 12.00 from holding Eaton Vance Senior or generate 1.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abrdn Emerging Markets vs. Eaton Vance Senior
Performance |
| Timeline |
| Abrdn Emerging Markets |
| Eaton Vance Senior |
Abrdn Emerging and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abrdn Emerging and Eaton Vance
The main advantage of trading using opposite Abrdn Emerging and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abrdn Emerging 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.| Abrdn Emerging vs. DWS Municipal Income | Abrdn Emerging vs. Blackrock Muni Intermediate | Abrdn Emerging vs. Blackrock Muniyield | Abrdn Emerging vs. Flow Capital Corp |
| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |