Correlation Between Eaton Vance and The Emerging
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and The Emerging 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 Eaton Vance and The Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Multi Strategy and The Emerging Markets, you can compare the effects of market volatilities on Eaton Vance and The Emerging 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 Eaton Vance with a short position of The Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and The Emerging.
Diversification Opportunities for Eaton Vance and The Emerging
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eaton and The is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Multi Strategy and The Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets and Eaton Vance 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 Eaton Vance Multi Strategy are associated (or correlated) with The Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of Eaton Vance i.e., Eaton Vance and The Emerging go up and down completely randomly.
Pair Corralation between Eaton Vance and The Emerging
Assuming the 90 days horizon Eaton Vance Multi Strategy is expected to generate 0.22 times more return on investment than The Emerging. However, Eaton Vance Multi Strategy is 4.46 times less risky than The Emerging. It trades about 0.18 of its potential returns per unit of risk. The Emerging Markets is currently generating about 0.04 per unit of risk. If you would invest 835.00 in Eaton Vance Multi Strategy on September 5, 2024 and sell it today you would earn a total of 159.00 from holding Eaton Vance Multi Strategy or generate 19.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Eaton Vance Multi Strategy vs. The Emerging Markets
Performance |
| Timeline |
| Eaton Vance Multi |
| Emerging Markets |
Eaton Vance and The Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and The Emerging
The main advantage of trading using opposite Eaton Vance and The Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, The Emerging 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 The Emerging will offset losses from the drop in The Emerging's long position.| Eaton Vance vs. The Emerging Markets | Eaton Vance vs. Oklahoma College Savings | Eaton Vance vs. Massmutual Select Diversified | Eaton Vance vs. Western Assets Emerging |
| The Emerging vs. Oklahoma College Savings | The Emerging vs. Barings Emerging Markets | The Emerging vs. Rbc Emerging Markets | The Emerging vs. Morgan Stanley Emerging |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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