Correlation Between Leggmason Partners and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Leggmason Partners 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 Leggmason Partners and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Leggmason Partners Institutional and Eaton Vance Global, you can compare the effects of market volatilities on Leggmason Partners 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 Leggmason Partners with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leggmason Partners and Eaton Vance.
Diversification Opportunities for Leggmason Partners and Eaton Vance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leggmason and Eaton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Leggmason Partners Institution and Eaton Vance Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Global and Leggmason Partners 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 Leggmason Partners Institutional 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 Global has no effect on the direction of Leggmason Partners i.e., Leggmason Partners and Eaton Vance go up and down completely randomly.
Pair Corralation between Leggmason Partners and Eaton Vance
If you would invest (100.00) in Eaton Vance Global on November 29, 2024 and sell it today you would earn a total of 100.00 from holding Eaton Vance Global or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Leggmason Partners Institution vs. Eaton Vance Global
Performance |
| Timeline |
| Leggmason Partners |
| Eaton Vance Global |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Leggmason Partners and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leggmason Partners and Eaton Vance
The main advantage of trading using opposite Leggmason Partners and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leggmason Partners 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.| Leggmason Partners vs. Aqr Risk Parity | Leggmason Partners vs. Gmo High Yield | Leggmason Partners vs. Mesirow Financial High | Leggmason Partners vs. Metropolitan West High |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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