Correlation Between Eaton Vance and Wasatch Emerging
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Wasatch 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 Wasatch Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Greater and Wasatch Emerging India, you can compare the effects of market volatilities on Eaton Vance and Wasatch 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 Wasatch Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Wasatch Emerging.
Diversification Opportunities for Eaton Vance and Wasatch Emerging
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EATON and Wasatch is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Greater and Wasatch Emerging India in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wasatch Emerging India 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 Greater are associated (or correlated) with Wasatch Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wasatch Emerging India has no effect on the direction of Eaton Vance i.e., Eaton Vance and Wasatch Emerging go up and down completely randomly.
Pair Corralation between Eaton Vance and Wasatch Emerging
Assuming the 90 days horizon Eaton Vance is expected to generate 1.58 times less return on investment than Wasatch Emerging. In addition to that, Eaton Vance is 1.23 times more volatile than Wasatch Emerging India. It trades about 0.02 of its total potential returns per unit of risk. Wasatch Emerging India is currently generating about 0.05 per unit of volatility. If you would invest 575.00 in Wasatch Emerging India on August 26, 2024 and sell it today you would earn a total of 110.00 from holding Wasatch Emerging India or generate 19.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Greater vs. Wasatch Emerging India
Performance |
| Timeline |
| Eaton Vance Greater |
| Wasatch Emerging India |
Eaton Vance and Wasatch Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Wasatch Emerging
The main advantage of trading using opposite Eaton Vance and Wasatch Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Wasatch 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 Wasatch Emerging will offset losses from the drop in Wasatch Emerging's long position.| Eaton Vance vs. Matthews India Fund | Eaton Vance vs. Morgan Stanley India | Eaton Vance vs. India Closed | Eaton Vance vs. Aquagold International |
| Wasatch Emerging vs. Matthews India Fund | Wasatch Emerging vs. Wasatch Emerging Markets | Wasatch Emerging vs. Wasatch Emerging Markets | Wasatch Emerging vs. iShares MSCI India |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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