Correlation Between Barings Emerging and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Barings 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 Barings 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 Barings Emerging Markets and Eaton Vance Multi Strategy, you can compare the effects of market volatilities on Barings 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 Barings Emerging with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Eaton Vance.
Diversification Opportunities for Barings Emerging and Eaton Vance
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Barings and Eaton is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Eaton Vance Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Multi and Barings 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 Barings 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 Multi has no effect on the direction of Barings Emerging i.e., Barings Emerging and Eaton Vance go up and down completely randomly.
Pair Corralation between Barings Emerging and Eaton Vance
Assuming the 90 days horizon Barings Emerging is expected to generate 2.28 times less return on investment than Eaton Vance. In addition to that, Barings Emerging is 2.21 times more volatile than Eaton Vance Multi Strategy. It trades about 0.04 of its total potential returns per unit of risk. Eaton Vance Multi Strategy is currently generating about 0.21 per unit of volatility. If you would invest 916.00 in Eaton Vance Multi Strategy on September 14, 2024 and sell it today you would earn a total of 79.00 from holding Eaton Vance Multi Strategy or generate 8.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Barings Emerging Markets vs. Eaton Vance Multi Strategy
Performance |
| Timeline |
| Barings Emerging Markets |
| Eaton Vance Multi |
Barings Emerging and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Eaton Vance
The main advantage of trading using opposite Barings Emerging and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings 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.| Barings Emerging vs. Clearbridge Energy Mlp | Barings Emerging vs. Dreyfus Natural Resources | Barings Emerging vs. Jennison Natural Resources | Barings Emerging vs. Calvert Global Energy |
| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |