Correlation Between Mondrian Emerging and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Mondrian Emerging 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 Mondrian Emerging and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondrian Emerging Markets and Eaton Vance Multi Asset, you can compare the effects of market volatilities on Mondrian Emerging 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 Mondrian Emerging with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondrian Emerging and Eaton Vance.
Diversification Opportunities for Mondrian Emerging and Eaton Vance
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mondrian and Eaton is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Mondrian Emerging Markets and Eaton Vance Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Multi and Mondrian Emerging 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 Mondrian Emerging Markets 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 Multi has no effect on the direction of Mondrian Emerging i.e., Mondrian Emerging and Eaton Vance go up and down completely randomly.
Pair Corralation between Mondrian Emerging and Eaton Vance
Assuming the 90 days horizon Mondrian Emerging Markets is expected to under-perform the Eaton Vance. In addition to that, Mondrian Emerging is 11.29 times more volatile than Eaton Vance Multi Asset. It trades about -0.07 of its total potential returns per unit of risk. Eaton Vance Multi Asset is currently generating about 0.15 per unit of volatility. If you would invest 995.00 in Eaton Vance Multi Asset on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Eaton Vance Multi Asset or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mondrian Emerging Markets vs. Eaton Vance Multi Asset
Performance |
| Timeline |
| Mondrian Emerging Markets |
| Eaton Vance Multi |
Mondrian Emerging and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondrian Emerging and Eaton Vance
The main advantage of trading using opposite Mondrian Emerging and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondrian Emerging 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.| Mondrian Emerging vs. Blackrock Inflation Protected | Mondrian Emerging vs. Guggenheim Managed Futures | Mondrian Emerging vs. Loomis Sayles Inflation | Mondrian Emerging vs. American Funds Inflation |
| Eaton Vance vs. Franklin Mutual Global | Eaton Vance vs. Jhancock Global Equity | Eaton Vance vs. Artisan Global Unconstrained | Eaton Vance vs. Kinetics Global Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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