Correlation Between Auer Growth and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Auer Growth 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 Auer Growth and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auer Growth Fund and Eaton Vance Balanced, you can compare the effects of market volatilities on Auer Growth 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 Auer Growth with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auer Growth and Eaton Vance.
Diversification Opportunities for Auer Growth and Eaton Vance
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Auer and Eaton is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Auer Growth Fund and Eaton Vance Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Balanced and Auer Growth 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 Auer Growth 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 Balanced has no effect on the direction of Auer Growth i.e., Auer Growth and Eaton Vance go up and down completely randomly.
Pair Corralation between Auer Growth and Eaton Vance
Assuming the 90 days horizon Auer Growth Fund is expected to generate 1.9 times more return on investment than Eaton Vance. However, Auer Growth is 1.9 times more volatile than Eaton Vance Balanced. It trades about 0.26 of its potential returns per unit of risk. Eaton Vance Balanced is currently generating about 0.28 per unit of risk. If you would invest 1,680 in Auer Growth Fund on September 3, 2024 and sell it today you would earn a total of 88.00 from holding Auer Growth Fund or generate 5.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Auer Growth Fund vs. Eaton Vance Balanced
Performance |
| Timeline |
| Auer Growth Fund |
| Eaton Vance Balanced |
Auer Growth and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auer Growth and Eaton Vance
The main advantage of trading using opposite Auer Growth and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auer Growth 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.| Auer Growth vs. Lebenthal Lisanti Small | Auer Growth vs. Hodges Small Cap | Auer Growth vs. Schwartz Value Focused | Auer Growth vs. Oberweis Small Cap Opportunities |
| Eaton Vance vs. Auer Growth Fund | Eaton Vance vs. Growth Strategy Fund | Eaton Vance vs. T Rowe Price | Eaton Vance vs. Small Cap Stock |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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