Correlation Between Eaton Vance and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Harding Loevner 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 Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Emerging and Harding Loevner Emerging, you can compare the effects of market volatilities on Eaton Vance and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Harding Loevner.
Diversification Opportunities for Eaton Vance and Harding Loevner
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and Harding is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Emerging and Harding Loevner Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Emerging 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 Emerging are associated (or correlated) with Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Emerging has no effect on the direction of Eaton Vance i.e., Eaton Vance and Harding Loevner go up and down completely randomly.
Pair Corralation between Eaton Vance and Harding Loevner
Assuming the 90 days horizon Eaton Vance Emerging is expected to generate 0.27 times more return on investment than Harding Loevner. However, Eaton Vance Emerging is 3.76 times less risky than Harding Loevner. It trades about 0.6 of its potential returns per unit of risk. Harding Loevner Emerging is currently generating about -0.14 per unit of risk. If you would invest 789.00 in Eaton Vance Emerging on October 21, 2024 and sell it today you would earn a total of 15.00 from holding Eaton Vance Emerging or generate 1.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Emerging vs. Harding Loevner Emerging
Performance |
| Timeline |
| Eaton Vance Emerging |
| Harding Loevner Emerging |
Eaton Vance and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Harding Loevner
The main advantage of trading using opposite Eaton Vance and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
| Harding Loevner vs. Ssga International Stock | Harding Loevner vs. Schwab E Equity | Harding Loevner vs. Driehaus Emerging Markets | Harding Loevner vs. Columbia 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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