Correlation Between Calvert Global and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and Eaton Vance Core, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Eaton Vance.
Diversification Opportunities for Calvert Global and Eaton Vance
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Calvert and Eaton is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and Eaton Vance Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Core and Calvert Global 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 Calvert Global Energy 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 Core has no effect on the direction of Calvert Global i.e., Calvert Global and Eaton Vance go up and down completely randomly.
Pair Corralation between Calvert Global and Eaton Vance
Assuming the 90 days horizon Calvert Global Energy is expected to under-perform the Eaton Vance. In addition to that, Calvert Global is 3.16 times more volatile than Eaton Vance Core. It trades about -0.15 of its total potential returns per unit of risk. Eaton Vance Core is currently generating about -0.07 per unit of volatility. If you would invest 854.00 in Eaton Vance Core on August 24, 2024 and sell it today you would lose (4.00) from holding Eaton Vance Core or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. Eaton Vance Core
Performance |
| Timeline |
| Calvert Global Energy |
| Eaton Vance Core |
Calvert Global and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and Eaton Vance
The main advantage of trading using opposite Calvert Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Commonwealth Global Fund | Calvert Global vs. Ab Global Bond | Calvert Global vs. Mirova Global Green | Calvert Global vs. Artisan Global Unconstrained |
| Eaton Vance vs. Clearbridge Energy Mlp | Eaton Vance vs. Gmo Resources | Eaton Vance vs. Calvert Global Energy | Eaton Vance vs. Dreyfus Natural Resources |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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