Correlation Between Eaton Vance and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Barclays Capital 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 Barclays Capital 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 Barclays Capital, you can compare the effects of market volatilities on Eaton Vance and Barclays Capital 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Barclays Capital.
Diversification Opportunities for Eaton Vance and Barclays Capital
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eaton and Barclays is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Eaton Vance i.e., Eaton Vance and Barclays Capital go up and down completely randomly.
Pair Corralation between Eaton Vance and Barclays Capital
Considering the 90-day investment horizon Eaton Vance is expected to generate 2.48 times less return on investment than Barclays Capital. But when comparing it to its historical volatility, Eaton Vance National is 2.33 times less risky than Barclays Capital. It trades about 0.03 of its potential returns per unit of risk. Barclays Capital is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,673 in Barclays Capital on August 26, 2024 and sell it today you would earn a total of 581.00 from holding Barclays Capital or generate 7.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.19% |
| Values | Daily Returns |
Eaton Vance National vs. Barclays Capital
Performance |
| Timeline |
| Eaton Vance National |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Barclays Capital
The main advantage of trading using opposite Eaton Vance and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital'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 |
| Barclays Capital vs. Blackrock Muniholdings Ny | Barclays Capital vs. MFS Investment Grade | Barclays Capital vs. Eaton Vance National | Barclays Capital vs. Invesco High Income |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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