Correlation Between Baird Small/mid and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Baird Small/mid 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 Baird Small/mid and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baird Smallmid Cap and Eaton Vance Stock, you can compare the effects of market volatilities on Baird Small/mid 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 Baird Small/mid with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baird Small/mid and Eaton Vance.
Diversification Opportunities for Baird Small/mid and Eaton Vance
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Baird and Eaton is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Baird Smallmid Cap and Eaton Vance Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Stock and Baird Small/mid 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 Baird Smallmid Cap 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 Stock has no effect on the direction of Baird Small/mid i.e., Baird Small/mid and Eaton Vance go up and down completely randomly.
Pair Corralation between Baird Small/mid and Eaton Vance
Assuming the 90 days horizon Baird Smallmid Cap is expected to under-perform the Eaton Vance. In addition to that, Baird Small/mid is 1.43 times more volatile than Eaton Vance Stock. It trades about -0.31 of its total potential returns per unit of risk. Eaton Vance Stock is currently generating about -0.05 per unit of volatility. If you would invest 2,139 in Eaton Vance Stock on November 28, 2024 and sell it today you would lose (20.00) from holding Eaton Vance Stock or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baird Smallmid Cap vs. Eaton Vance Stock
Performance |
| Timeline |
| Baird Smallmid Cap |
| Eaton Vance Stock |
Baird Small/mid and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baird Small/mid and Eaton Vance
The main advantage of trading using opposite Baird Small/mid and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baird Small/mid 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.| Baird Small/mid vs. Intal High Relative | Baird Small/mid vs. Arrow Managed Futures | Baird Small/mid vs. Nasdaq 100 2x Strategy | Baird Small/mid vs. Victory Incore Fund |
| Eaton Vance vs. Eaton Vance Richard | Eaton Vance vs. Eaton Vance Small Cap | Eaton Vance vs. Eaton Vance Short | Eaton Vance vs. Eaton Vance South |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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