Correlation Between Eaton Vance and Blackstone Gso
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Blackstone Gso 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 Blackstone Gso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Senior and Blackstone Gso Senior, you can compare the effects of market volatilities on Eaton Vance and Blackstone Gso 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 Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Blackstone Gso.
Diversification Opportunities for Eaton Vance and Blackstone Gso
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Blackstone is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Blackstone Gso Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Senior 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 Senior are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Senior has no effect on the direction of Eaton Vance i.e., Eaton Vance and Blackstone Gso go up and down completely randomly.
Pair Corralation between Eaton Vance and Blackstone Gso
Considering the 90-day investment horizon Eaton Vance is expected to generate 5.23 times less return on investment than Blackstone Gso. But when comparing it to its historical volatility, Eaton Vance Senior is 1.26 times less risky than Blackstone Gso. It trades about 0.08 of its potential returns per unit of risk. Blackstone Gso Senior is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,397 in Blackstone Gso Senior on August 26, 2024 and sell it today you would earn a total of 61.00 from holding Blackstone Gso Senior or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Senior vs. Blackstone Gso Senior
Performance |
| Timeline |
| Eaton Vance Senior |
| Blackstone Gso Senior |
Eaton Vance and Blackstone Gso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Blackstone Gso
The main advantage of trading using opposite Eaton Vance and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Blackstone Gso 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 Blackstone Gso will offset losses from the drop in Blackstone Gso's long position.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Invesco High Income | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select |
| Blackstone Gso vs. Blackstone Gso Long | Blackstone Gso vs. First Trust Senior | Blackstone Gso vs. Eaton Vance Senior | Blackstone Gso vs. Blackstone Gso Strategic |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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