Correlation Between Eaton Vance and Guinness Atkinson
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Guinness Atkinson 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 Guinness Atkinson 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 Guinness Atkinson China, you can compare the effects of market volatilities on Eaton Vance and Guinness Atkinson 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 Guinness Atkinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Guinness Atkinson.
Diversification Opportunities for Eaton Vance and Guinness Atkinson
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Guinness is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Greater and Guinness Atkinson China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guinness Atkinson China 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 Guinness Atkinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guinness Atkinson China has no effect on the direction of Eaton Vance i.e., Eaton Vance and Guinness Atkinson go up and down completely randomly.
Pair Corralation between Eaton Vance and Guinness Atkinson
Assuming the 90 days horizon Eaton Vance Greater is expected to generate 1.04 times more return on investment than Guinness Atkinson. However, Eaton Vance is 1.04 times more volatile than Guinness Atkinson China. It trades about -0.02 of its potential returns per unit of risk. Guinness Atkinson China is currently generating about -0.06 per unit of risk. If you would invest 1,458 in Eaton Vance Greater on October 24, 2024 and sell it today you would lose (34.00) from holding Eaton Vance Greater or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.33% |
| Values | Daily Returns |
Eaton Vance Greater vs. Guinness Atkinson China
Performance |
| Timeline |
| Eaton Vance Greater |
| Guinness Atkinson China |
Eaton Vance and Guinness Atkinson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Guinness Atkinson
The main advantage of trading using opposite Eaton Vance and Guinness Atkinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Guinness Atkinson 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 Guinness Atkinson will offset losses from the drop in Guinness Atkinson's long position.| Eaton Vance vs. Columbia Greater China | Eaton Vance vs. Guinness Atkinson China | Eaton Vance vs. Aberdeen China Oppty | Eaton Vance vs. Eaton Vance Greater |
| Guinness Atkinson vs. Guinness Atkinson Asia | Guinness Atkinson vs. Matthews China Fund | Guinness Atkinson vs. Columbia Greater China | Guinness Atkinson vs. Eaton Vance Greater |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |