Correlation Between Eaton Vance and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Stone Harbor 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 Stone Harbor 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 Stone Harbor Emerging, you can compare the effects of market volatilities on Eaton Vance and Stone Harbor 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 Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Stone Harbor.
Diversification Opportunities for Eaton Vance and Stone Harbor
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eaton and Stone is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Stone Harbor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Emerging 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 Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Emerging has no effect on the direction of Eaton Vance i.e., Eaton Vance and Stone Harbor go up and down completely randomly.
Pair Corralation between Eaton Vance and Stone Harbor
Considering the 90-day investment horizon Eaton Vance is expected to generate 1.32 times less return on investment than Stone Harbor. But when comparing it to its historical volatility, Eaton Vance Senior is 1.52 times less risky than Stone Harbor. It trades about 0.05 of its potential returns per unit of risk. Stone Harbor Emerging is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 504.00 in Stone Harbor Emerging on November 2, 2024 and sell it today you would earn a total of 43.00 from holding Stone Harbor Emerging or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.67% |
| Values | Daily Returns |
Eaton Vance Senior vs. Stone Harbor Emerging
Performance |
| Timeline |
| Eaton Vance Senior |
| Stone Harbor Emerging |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Eaton Vance and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Stone Harbor
The main advantage of trading using opposite Eaton Vance and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| Eaton Vance vs. MFS Investment Grade | Eaton Vance vs. Eaton Vance National | Eaton Vance vs. Nuveen California Select | Eaton Vance vs. Federated Premier Municipal |
| Stone Harbor vs. Aberdeen Global IF | Stone Harbor vs. Clough Global Opportunities | Stone Harbor vs. RiverNorthDoubleLine Strategic Opportunity | Stone Harbor vs. Cornerstone Strategic Return |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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