Correlation Between Aberdeen China and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Aberdeen China 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 Aberdeen China and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen China Oppty and Eaton Vance Greater, you can compare the effects of market volatilities on Aberdeen China 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 Aberdeen China with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen China and Eaton Vance.
Diversification Opportunities for Aberdeen China and Eaton Vance
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aberdeen and Eaton is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen China Oppty and Eaton Vance Greater in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Greater and Aberdeen China 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 Aberdeen China Oppty 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 Greater has no effect on the direction of Aberdeen China i.e., Aberdeen China and Eaton Vance go up and down completely randomly.
Pair Corralation between Aberdeen China and Eaton Vance
Assuming the 90 days horizon Aberdeen China Oppty is expected to under-perform the Eaton Vance. But the mutual fund apears to be less risky and, when comparing its historical volatility, Aberdeen China Oppty is 1.23 times less risky than Eaton Vance. The mutual fund trades about -0.03 of its potential returns per unit of risk. The Eaton Vance Greater is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,662 in Eaton Vance Greater on January 17, 2025 and sell it today you would lose (165.00) from holding Eaton Vance Greater or give up 9.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen China Oppty vs. Eaton Vance Greater
Performance |
| Timeline |
| Aberdeen China Oppty |
| Eaton Vance Greater |
Aberdeen China and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen China and Eaton Vance
The main advantage of trading using opposite Aberdeen China and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen China 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.| Aberdeen China vs. Ft 9331 Corporate | Aberdeen China vs. Versatile Bond Portfolio | Aberdeen China vs. Pace Strategic Fixed | Aberdeen China vs. Doubleline Total Return |
| Eaton Vance vs. Columbia Greater China | Eaton Vance vs. Guinness Atkinson China | Eaton Vance vs. Aberdeen China Oppty | Eaton Vance vs. Eaton Vance Greater |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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