Correlation Between Eaton Vance and Blue Current
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Blue Current 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 Blue Current into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Diversified and Blue Current Global, you can compare the effects of market volatilities on Eaton Vance and Blue Current 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 Blue Current. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Blue Current.
Diversification Opportunities for Eaton Vance and Blue Current
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Blue is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Diversified and Blue Current Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue Current Global 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 Diversified are associated (or correlated) with Blue Current. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue Current Global has no effect on the direction of Eaton Vance i.e., Eaton Vance and Blue Current go up and down completely randomly.
Pair Corralation between Eaton Vance and Blue Current
Assuming the 90 days horizon Eaton Vance is expected to generate 2.49 times less return on investment than Blue Current. But when comparing it to its historical volatility, Eaton Vance Diversified is 1.55 times less risky than Blue Current. It trades about 0.12 of its potential returns per unit of risk. Blue Current Global is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,556 in Blue Current Global on November 30, 2024 and sell it today you would earn a total of 80.00 from holding Blue Current Global or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Diversified vs. Blue Current Global
Performance |
| Timeline |
| Eaton Vance Diversified |
| Blue Current Global |
Eaton Vance and Blue Current Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Blue Current
The main advantage of trading using opposite Eaton Vance and Blue Current positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Blue Current 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 Blue Current will offset losses from the drop in Blue Current's long position.| Eaton Vance vs. Eip Growth And | Eaton Vance vs. Tfa Alphagen Growth | Eaton Vance vs. Multimanager Lifestyle Growth | Eaton Vance vs. Morgan Stanley Institutional |
| Blue Current vs. Barings Emerging Markets | Blue Current vs. Angel Oak Ultrashort | Blue Current vs. Doubleline Emerging Markets | Blue Current vs. Jhancock Diversified Macro |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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