Correlation Between Eaton Vance and Aqr Global
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Aqr 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 Aqr Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Municipal and Aqr Global Macro, you can compare the effects of market volatilities on Eaton Vance and Aqr 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 Aqr Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Aqr Global.
Diversification Opportunities for Eaton Vance and Aqr Global
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eaton and Aqr is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Municipal and Aqr Global Macro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqr Global Macro 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 Municipal are associated (or correlated) with Aqr Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqr Global Macro has no effect on the direction of Eaton Vance i.e., Eaton Vance and Aqr Global go up and down completely randomly.
Pair Corralation between Eaton Vance and Aqr Global
Assuming the 90 days horizon Eaton Vance Municipal is expected to generate 0.4 times more return on investment than Aqr Global. However, Eaton Vance Municipal is 2.51 times less risky than Aqr Global. It trades about 0.04 of its potential returns per unit of risk. Aqr Global Macro is currently generating about 0.0 per unit of risk. If you would invest 1,074 in Eaton Vance Municipal on October 21, 2024 and sell it today you would earn a total of 52.00 from holding Eaton Vance Municipal or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Municipal vs. Aqr Global Macro
Performance |
| Timeline |
| Eaton Vance Municipal |
| Aqr Global Macro |
Eaton Vance and Aqr Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Aqr Global
The main advantage of trading using opposite Eaton Vance and Aqr Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Aqr 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 Aqr Global will offset losses from the drop in Aqr Global's long position.| Eaton Vance vs. Aqr Global Macro | Eaton Vance vs. Dreyfusstandish Global Fixed | Eaton Vance vs. T Rowe Price | Eaton Vance vs. Ab Global Bond |
| Aqr Global vs. Qs Defensive Growth | Aqr Global vs. Eip Growth And | Aqr Global vs. Stringer Growth Fund | Aqr Global 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |