Correlation Between Eaton Vance and Guardian Capital
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Guardian Capital 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 Guardian Capital 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 Guardian Capital Group, you can compare the effects of market volatilities on Eaton Vance and Guardian Capital 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 Guardian Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Guardian Capital.
Diversification Opportunities for Eaton Vance and Guardian Capital
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eaton and Guardian is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Senior and Guardian Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Capital 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 Guardian Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Capital has no effect on the direction of Eaton Vance i.e., Eaton Vance and Guardian Capital go up and down completely randomly.
Pair Corralation between Eaton Vance and Guardian Capital
Considering the 90-day investment horizon Eaton Vance is expected to generate 1.15 times less return on investment than Guardian Capital. But when comparing it to its historical volatility, Eaton Vance Senior is 1.14 times less risky than Guardian Capital. It trades about 0.14 of its potential returns per unit of risk. Guardian Capital Group is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,881 in Guardian Capital Group on August 28, 2024 and sell it today you would earn a total of 45.00 from holding Guardian Capital Group or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eaton Vance Senior vs. Guardian Capital Group
Performance |
| Timeline |
| Eaton Vance Senior |
| Guardian Capital |
Eaton Vance and Guardian Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Guardian Capital
The main advantage of trading using opposite Eaton Vance and Guardian Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Guardian Capital 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 Guardian Capital will offset losses from the drop in Guardian Capital'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 |
| Guardian Capital vs. Flow Capital Corp | Guardian Capital vs. Blackhawk Growth Corp | Guardian Capital vs. Urbana | Guardian Capital vs. Princeton Capital |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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