Correlation Between Eaton Vance and Shelton Emerging
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Shelton Emerging 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 Shelton Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Balanced and Shelton Emerging Markets, you can compare the effects of market volatilities on Eaton Vance and Shelton Emerging 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 Shelton Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Shelton Emerging.
Diversification Opportunities for Eaton Vance and Shelton Emerging
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eaton and Shelton is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Balanced and Shelton Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Emerging Markets 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 Balanced are associated (or correlated) with Shelton Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Emerging Markets has no effect on the direction of Eaton Vance i.e., Eaton Vance and Shelton Emerging go up and down completely randomly.
Pair Corralation between Eaton Vance and Shelton Emerging
Assuming the 90 days horizon Eaton Vance Balanced is expected to generate 0.62 times more return on investment than Shelton Emerging. However, Eaton Vance Balanced is 1.6 times less risky than Shelton Emerging. It trades about 0.1 of its potential returns per unit of risk. Shelton Emerging Markets is currently generating about 0.01 per unit of risk. If you would invest 920.00 in Eaton Vance Balanced on September 2, 2024 and sell it today you would earn a total of 325.00 from holding Eaton Vance Balanced or generate 35.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Balanced vs. Shelton Emerging Markets
Performance |
| Timeline |
| Eaton Vance Balanced |
| Shelton Emerging Markets |
Eaton Vance and Shelton Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Shelton Emerging
The main advantage of trading using opposite Eaton Vance and Shelton Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Shelton Emerging 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 Shelton Emerging will offset losses from the drop in Shelton Emerging's long position.| Eaton Vance vs. Shelton Emerging Markets | Eaton Vance vs. Origin Emerging Markets | Eaton Vance vs. Growth Strategy Fund | Eaton Vance vs. Black Oak Emerging |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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