Correlation Between Guidepath Managed and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Guidepath Managed 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 Guidepath Managed and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guidepath Managed Futures and Eaton Vance Municipal, you can compare the effects of market volatilities on Guidepath Managed 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 Guidepath Managed with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guidepath Managed and Eaton Vance.
Diversification Opportunities for Guidepath Managed and Eaton Vance
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guidepath and Eaton is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Guidepath Managed Futures and Eaton Vance Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Municipal and Guidepath Managed 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 Guidepath Managed Futures 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 Municipal has no effect on the direction of Guidepath Managed i.e., Guidepath Managed and Eaton Vance go up and down completely randomly.
Pair Corralation between Guidepath Managed and Eaton Vance
Assuming the 90 days horizon Guidepath Managed Futures is expected to under-perform the Eaton Vance. In addition to that, Guidepath Managed is 3.43 times more volatile than Eaton Vance Municipal. It trades about -0.01 of its total potential returns per unit of risk. Eaton Vance Municipal is currently generating about 0.1 per unit of volatility. If you would invest 1,093 in Eaton Vance Municipal on September 12, 2024 and sell it today you would earn a total of 59.00 from holding Eaton Vance Municipal or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guidepath Managed Futures vs. Eaton Vance Municipal
Performance |
| Timeline |
| Guidepath Managed Futures |
| Eaton Vance Municipal |
Guidepath Managed and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guidepath Managed and Eaton Vance
The main advantage of trading using opposite Guidepath Managed and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guidepath Managed 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.The idea behind Guidepath Managed Futures and Eaton Vance Municipal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Eaton Vance vs. Atac Inflation Rotation | Eaton Vance vs. Guidepath Managed Futures | Eaton Vance vs. Loomis Sayles Inflation | Eaton Vance vs. Aqr Managed Futures |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |