Correlation Between Eaton Vance and Aqr Managed
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Aqr Managed 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 Aqr Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Global and Aqr Managed Futures, you can compare the effects of market volatilities on Eaton Vance and Aqr Managed 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 Aqr Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Aqr Managed.
Diversification Opportunities for Eaton Vance and Aqr Managed
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Aqr is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Global and Aqr Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Managed Futures 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 Global are associated (or correlated) with Aqr Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Managed Futures has no effect on the direction of Eaton Vance i.e., Eaton Vance and Aqr Managed go up and down completely randomly.
Pair Corralation between Eaton Vance and Aqr Managed
Assuming the 90 days horizon Eaton Vance Global is expected to generate 0.3 times more return on investment than Aqr Managed. However, Eaton Vance Global is 3.29 times less risky than Aqr Managed. It trades about 0.17 of its potential returns per unit of risk. Aqr Managed Futures is currently generating about 0.03 per unit of risk. If you would invest 914.00 in Eaton Vance Global on August 31, 2024 and sell it today you would earn a total of 151.00 from holding Eaton Vance Global or generate 16.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Global vs. Aqr Managed Futures
Performance |
| Timeline |
| Eaton Vance Global |
| Aqr Managed Futures |
Eaton Vance and Aqr Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Aqr Managed
The main advantage of trading using opposite Eaton Vance and Aqr Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Aqr Managed 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 Aqr Managed will offset losses from the drop in Aqr Managed's long position.| Eaton Vance vs. Science Technology Fund | Eaton Vance vs. Mfs Technology Fund | Eaton Vance vs. Goldman Sachs Technology | Eaton Vance vs. Science Technology Fund |
| Aqr Managed vs. Vanguard Small Cap Growth | Aqr Managed vs. Tax Managed Mid Small | Aqr Managed vs. Champlain Small | Aqr Managed vs. Small Pany Growth |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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