Correlation Between Eaton Vance and Barings Global
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Barings 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 Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax and Barings Global Credit, you can compare the effects of market volatilities on Eaton Vance and Barings 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 Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Barings Global.
Diversification Opportunities for Eaton Vance and Barings Global
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Barings is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Barings Global Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Credit 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 Tax are associated (or correlated) with Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Credit has no effect on the direction of Eaton Vance i.e., Eaton Vance and Barings Global go up and down completely randomly.
Pair Corralation between Eaton Vance and Barings Global
Considering the 90-day investment horizon Eaton Vance Tax is expected to generate 5.78 times more return on investment than Barings Global. However, Eaton Vance is 5.78 times more volatile than Barings Global Credit. It trades about 0.16 of its potential returns per unit of risk. Barings Global Credit is currently generating about 0.23 per unit of risk. If you would invest 1,450 in Eaton Vance Tax on August 27, 2024 and sell it today you would earn a total of 38.00 from holding Eaton Vance Tax or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax vs. Barings Global Credit
Performance |
| Timeline |
| Eaton Vance Tax |
| Barings Global Credit |
Eaton Vance and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Barings Global
The main advantage of trading using opposite Eaton Vance and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Barings 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 Barings Global will offset losses from the drop in Barings Global's long position.| Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax Managed | Eaton Vance vs. Eaton Vance Risk | Eaton Vance vs. Eaton Vance Tax |
| Barings Global vs. Angel Oak Multi Strategy | Barings Global vs. Investec Emerging Markets | Barings Global vs. Nasdaq 100 2x Strategy | Barings Global vs. Western Assets 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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