Correlation Between Eaton Vance and Baron Emerging
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Baron 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 Baron Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Income and Baron Emerging Markets, you can compare the effects of market volatilities on Eaton Vance and Baron 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 Baron Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Baron Emerging.
Diversification Opportunities for Eaton Vance and Baron Emerging
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eaton and Baron is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Income and Baron Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baron 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 Income are associated (or correlated) with Baron Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baron Emerging Markets has no effect on the direction of Eaton Vance i.e., Eaton Vance and Baron Emerging go up and down completely randomly.
Pair Corralation between Eaton Vance and Baron Emerging
Assuming the 90 days horizon Eaton Vance Income is expected to generate 0.17 times more return on investment than Baron Emerging. However, Eaton Vance Income is 5.86 times less risky than Baron Emerging. It trades about 0.12 of its potential returns per unit of risk. Baron Emerging Markets is currently generating about -0.1 per unit of risk. If you would invest 521.00 in Eaton Vance Income on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Eaton Vance Income or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Income vs. Baron Emerging Markets
Performance |
| Timeline |
| Eaton Vance Income |
| Baron Emerging Markets |
Eaton Vance and Baron Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Baron Emerging
The main advantage of trading using opposite Eaton Vance and Baron Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Baron 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 Baron Emerging will offset losses from the drop in Baron Emerging's long position.| Eaton Vance vs. Franklin High Yield | Eaton Vance vs. California High Yield Municipal | Eaton Vance vs. The National Tax Free | Eaton Vance vs. Federated Ohio Municipal |
| Baron Emerging vs. Eaton Vance Income | Baron Emerging vs. Baird Aggregate Bond | Baron Emerging vs. Champlain Small | Baron Emerging vs. Mfs Emerging Markets |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |