Correlation Between Matthews India and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Matthews India 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 Matthews India and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matthews India Fund and Eaton Vance Greater, you can compare the effects of market volatilities on Matthews India 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 Matthews India with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matthews India and Eaton Vance.
Diversification Opportunities for Matthews India and Eaton Vance
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Matthews and Eaton is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Matthews India Fund 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 Matthews India 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 Matthews India Fund 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 Matthews India i.e., Matthews India and Eaton Vance go up and down completely randomly.
Pair Corralation between Matthews India and Eaton Vance
Assuming the 90 days horizon Matthews India is expected to generate 1.44 times less return on investment than Eaton Vance. In addition to that, Matthews India is 1.27 times more volatile than Eaton Vance Greater. It trades about 0.04 of its total potential returns per unit of risk. Eaton Vance Greater is currently generating about 0.08 per unit of volatility. If you would invest 2,958 in Eaton Vance Greater on September 3, 2024 and sell it today you would earn a total of 305.00 from holding Eaton Vance Greater or generate 10.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matthews India Fund vs. Eaton Vance Greater
Performance |
| Timeline |
| Matthews India |
| Eaton Vance Greater |
Matthews India and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matthews India and Eaton Vance
The main advantage of trading using opposite Matthews India and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matthews India 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.| Matthews India vs. Matthews China Fund | Matthews India vs. Matthews Pacific Tiger | Matthews India vs. Eaton Vance Greater | Matthews India vs. Morgan Stanley India |
| Eaton Vance vs. Wasatch Emerging India | Eaton Vance vs. Alpskotak India Growth | Eaton Vance vs. Eaton Vance Greater | Eaton Vance vs. Columbia India Consumer |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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