Correlation Between Boston Partners and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Boston Partners 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 Boston Partners and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Small and Eaton Vance Large Cap, you can compare the effects of market volatilities on Boston Partners 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 Boston Partners with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Eaton Vance.
Diversification Opportunities for Boston Partners and Eaton Vance
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Boston and Eaton is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Small and Eaton Vance Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Large and Boston Partners 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 Boston Partners Small 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 Large has no effect on the direction of Boston Partners i.e., Boston Partners and Eaton Vance go up and down completely randomly.
Pair Corralation between Boston Partners and Eaton Vance
Assuming the 90 days horizon Boston Partners Small is expected to generate 2.03 times more return on investment than Eaton Vance. However, Boston Partners is 2.03 times more volatile than Eaton Vance Large Cap. It trades about 0.31 of its potential returns per unit of risk. Eaton Vance Large Cap is currently generating about 0.37 per unit of risk. If you would invest 2,672 in Boston Partners Small on September 2, 2024 and sell it today you would earn a total of 286.00 from holding Boston Partners Small or generate 10.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Partners Small vs. Eaton Vance Large Cap
Performance |
| Timeline |
| Boston Partners Small |
| Eaton Vance Large |
Boston Partners and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Eaton Vance
The main advantage of trading using opposite Boston Partners and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners 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.| Boston Partners vs. Aggressive Investors 1 | Boston Partners vs. Buffalo Small Cap | Boston Partners vs. Rice Hall James | Boston Partners vs. Putnam Small Cap |
| Eaton Vance vs. Palm Valley Capital | Eaton Vance vs. Boston Partners Small | Eaton Vance vs. Vanguard Small Cap Value | Eaton Vance vs. Royce Opportunity Fund |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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