Correlation Between Astor Longshort and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Astor Longshort 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 Astor Longshort and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astor Longshort Fund and Eaton Vance Atlanta, you can compare the effects of market volatilities on Astor Longshort 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 Astor Longshort with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astor Longshort and Eaton Vance.
Diversification Opportunities for Astor Longshort and Eaton Vance
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Astor and Eaton is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Astor Longshort Fund and Eaton Vance Atlanta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Atlanta and Astor Longshort 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 Astor Longshort Fund 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 Atlanta has no effect on the direction of Astor Longshort i.e., Astor Longshort and Eaton Vance go up and down completely randomly.
Pair Corralation between Astor Longshort and Eaton Vance
Assuming the 90 days horizon Astor Longshort Fund is expected to generate 0.34 times more return on investment than Eaton Vance. However, Astor Longshort Fund is 2.94 times less risky than Eaton Vance. It trades about 0.14 of its potential returns per unit of risk. Eaton Vance Atlanta is currently generating about -0.07 per unit of risk. If you would invest 1,416 in Astor Longshort Fund on September 12, 2024 and sell it today you would earn a total of 11.00 from holding Astor Longshort Fund or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astor Longshort Fund vs. Eaton Vance Atlanta
Performance |
| Timeline |
| Astor Longshort |
| Eaton Vance Atlanta |
Astor Longshort and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astor Longshort and Eaton Vance
The main advantage of trading using opposite Astor Longshort and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astor Longshort 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.| Astor Longshort vs. SCOR PK | Astor Longshort vs. Morningstar Unconstrained Allocation | Astor Longshort vs. Via Renewables | Astor Longshort vs. Bondbloxx ETF Trust |
| Eaton Vance vs. Vanguard Mid Cap Index | Eaton Vance vs. SCOR PK | Eaton Vance vs. Morningstar Unconstrained Allocation | Eaton Vance vs. Via Renewables |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |