Correlation Between Eaton Vance and KraneShares Asia
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and KraneShares Asia 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 KraneShares Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Enhanced and KraneShares Asia Pacific, you can compare the effects of market volatilities on Eaton Vance and KraneShares Asia 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 KraneShares Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and KraneShares Asia.
Diversification Opportunities for Eaton Vance and KraneShares Asia
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and KraneShares is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and KraneShares Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Asia Pacific 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 Enhanced are associated (or correlated) with KraneShares Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Asia Pacific has no effect on the direction of Eaton Vance i.e., Eaton Vance and KraneShares Asia go up and down completely randomly.
Pair Corralation between Eaton Vance and KraneShares Asia
Considering the 90-day investment horizon Eaton Vance Enhanced is expected to generate 4.45 times more return on investment than KraneShares Asia. However, Eaton Vance is 4.45 times more volatile than KraneShares Asia Pacific. It trades about 0.15 of its potential returns per unit of risk. KraneShares Asia Pacific is currently generating about 0.23 per unit of risk. If you would invest 1,673 in Eaton Vance Enhanced on September 4, 2024 and sell it today you would earn a total of 686.00 from holding Eaton Vance Enhanced or generate 41.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Enhanced vs. KraneShares Asia Pacific
Performance |
| Timeline |
| Eaton Vance Enhanced |
| KraneShares Asia Pacific |
Eaton Vance and KraneShares Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and KraneShares Asia
The main advantage of trading using opposite Eaton Vance and KraneShares Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, KraneShares Asia 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 KraneShares Asia will offset losses from the drop in KraneShares Asia's long position.| Eaton Vance vs. Columbia Seligman Premium | Eaton Vance vs. BlackRock Utility Infrastructure | Eaton Vance vs. BlackRock Health Sciences | Eaton Vance vs. BlackRock Science Tech |
| KraneShares Asia vs. iShares iBoxx Investment | KraneShares Asia vs. iShares iBoxx High | KraneShares Asia vs. iShares National Muni | KraneShares Asia vs. Invesco 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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