Correlation Between Eaton Vance and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Aberdeen 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 Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance National and Aberdeen Global Dynamic, you can compare the effects of market volatilities on Eaton Vance and Aberdeen 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 Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Aberdeen Global.
Diversification Opportunities for Eaton Vance and Aberdeen Global
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eaton and Aberdeen is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Aberdeen Global Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Dynamic 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 National are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Dynamic has no effect on the direction of Eaton Vance i.e., Eaton Vance and Aberdeen Global go up and down completely randomly.
Pair Corralation between Eaton Vance and Aberdeen Global
Considering the 90-day investment horizon Eaton Vance National is expected to under-perform the Aberdeen Global. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance National is 1.42 times less risky than Aberdeen Global. The stock trades about -0.24 of its potential returns per unit of risk. The Aberdeen Global Dynamic is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,026 in Aberdeen Global Dynamic on August 25, 2024 and sell it today you would lose (17.00) from holding Aberdeen Global Dynamic or give up 1.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance National vs. Aberdeen Global Dynamic
Performance |
| Timeline |
| Eaton Vance National |
| Aberdeen Global Dynamic |
Eaton Vance and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Aberdeen Global
The main advantage of trading using opposite Eaton Vance and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Aberdeen 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Eaton Vance vs. Invesco High Income | Eaton Vance vs. Blackrock Muniholdings Ny | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. MFS Investment Grade |
| Aberdeen Global vs. Blackrock Resources Commodities | Aberdeen Global vs. Aberdeen Total Dynamic | Aberdeen Global vs. Blackrock Enhanced Equity | Aberdeen Global vs. Cbre Clarion Global |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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