Correlation Between Glg Intl and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Glg Intl 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 Glg Intl and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Eaton Vance Floating Rate, you can compare the effects of market volatilities on Glg Intl 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 Glg Intl with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Eaton Vance.
Diversification Opportunities for Glg Intl and Eaton Vance
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Glg and Eaton is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating and Glg Intl 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 Glg Intl Small 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 Floating has no effect on the direction of Glg Intl i.e., Glg Intl and Eaton Vance go up and down completely randomly.
Pair Corralation between Glg Intl and Eaton Vance
Assuming the 90 days horizon Glg Intl Small is expected to generate 5.37 times more return on investment than Eaton Vance. However, Glg Intl is 5.37 times more volatile than Eaton Vance Floating Rate. It trades about 0.08 of its potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.19 per unit of risk. If you would invest 5,870 in Glg Intl Small on November 5, 2024 and sell it today you would earn a total of 3,041 from holding Glg Intl Small or generate 51.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Glg Intl Small vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Glg Intl Small |
| Eaton Vance Floating |
Glg Intl and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Eaton Vance
The main advantage of trading using opposite Glg Intl and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl 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.| Glg Intl vs. Goldman Sachs Financial | Glg Intl vs. Financials Ultrasector Profund | Glg Intl vs. Davis Financial Fund | Glg Intl vs. Blackrock Financial Institutions |
| Eaton Vance vs. Alliancebernstein Global Highome | Eaton Vance vs. Ab Global Bond | Eaton Vance vs. Rational Strategic Allocation | Eaton Vance vs. Tfa Alphagen Growth |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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