Correlation Between Eaton Vance and Templeton Global
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Templeton Global 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 Templeton Global 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 Templeton Global Bond, you can compare the effects of market volatilities on Eaton Vance and Templeton Global 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 Templeton Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Templeton Global.
Diversification Opportunities for Eaton Vance and Templeton Global
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and Templeton is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Global and Templeton Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Templeton Global Bond 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 Templeton Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Templeton Global Bond has no effect on the direction of Eaton Vance i.e., Eaton Vance and Templeton Global go up and down completely randomly.
Pair Corralation between Eaton Vance and Templeton Global
Assuming the 90 days horizon Eaton Vance Global is expected to generate 0.2 times more return on investment than Templeton Global. However, Eaton Vance Global is 5.11 times less risky than Templeton Global. It trades about 0.1 of its potential returns per unit of risk. Templeton Global Bond is currently generating about -0.37 per unit of risk. If you would invest 837.00 in Eaton Vance Global on August 29, 2024 and sell it today you would earn a total of 4.00 from holding Eaton Vance Global or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Global vs. Templeton Global Bond
Performance |
| Timeline |
| Eaton Vance Global |
| Templeton Global Bond |
Eaton Vance and Templeton Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Templeton Global
The main advantage of trading using opposite Eaton Vance and Templeton Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Templeton Global 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 Templeton Global will offset losses from the drop in Templeton Global's long position.| Eaton Vance vs. HUMANA INC | Eaton Vance vs. Aquagold International | Eaton Vance vs. Barloworld Ltd ADR | Eaton Vance vs. Morningstar Unconstrained Allocation |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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