Correlation Between Guardian Capital and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Guardian Capital and Eaton Vance 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 Guardian Capital and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guardian Capital Group and Eaton Vance Senior, you can compare the effects of market volatilities on Guardian Capital and Eaton Vance 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 Guardian Capital with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guardian Capital and Eaton Vance.
Diversification Opportunities for Guardian Capital and Eaton Vance
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Guardian and Eaton is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Capital Group and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior and Guardian Capital 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 Guardian Capital Group are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Senior has no effect on the direction of Guardian Capital i.e., Guardian Capital and Eaton Vance go up and down completely randomly.
Pair Corralation between Guardian Capital and Eaton Vance
Assuming the 90 days horizon Guardian Capital Group is expected to generate 1.14 times more return on investment than Eaton Vance. However, Guardian Capital is 1.14 times more volatile than Eaton Vance Senior. It trades about 0.14 of its potential returns per unit of risk. Eaton Vance Senior is currently generating about 0.14 per unit of risk. 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 |
Guardian Capital Group vs. Eaton Vance Senior
Performance |
| Timeline |
| Guardian Capital |
| Eaton Vance Senior |
Guardian Capital and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guardian Capital and Eaton Vance
The main advantage of trading using opposite Guardian Capital and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Capital position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance's long position.| Guardian Capital vs. Flow Capital Corp | Guardian Capital vs. Blackhawk Growth Corp | Guardian Capital vs. Urbana | Guardian Capital vs. Princeton Capital |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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