Correlation Between Aqr Global and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Aqr Global 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 Aqr Global and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Global Macro and Eaton Vance Municipal, you can compare the effects of market volatilities on Aqr Global 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 Aqr Global with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Global and Eaton Vance.
Diversification Opportunities for Aqr Global and Eaton Vance
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aqr and Eaton is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Global Macro 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 Aqr Global 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 Aqr Global Macro 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 Aqr Global i.e., Aqr Global and Eaton Vance go up and down completely randomly.
Pair Corralation between Aqr Global and Eaton Vance
Assuming the 90 days horizon Aqr Global Macro is expected to generate 2.63 times more return on investment than Eaton Vance. However, Aqr Global is 2.63 times more volatile than Eaton Vance Municipal. It trades about 0.29 of its potential returns per unit of risk. Eaton Vance Municipal is currently generating about 0.02 per unit of risk. If you would invest 933.00 in Aqr Global Macro on October 21, 2024 and sell it today you would earn a total of 28.00 from holding Aqr Global Macro or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Global Macro vs. Eaton Vance Municipal
Performance |
| Timeline |
| Aqr Global Macro |
| Eaton Vance Municipal |
Aqr Global and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Global and Eaton Vance
The main advantage of trading using opposite Aqr Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Global 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.| Aqr Global vs. Qs Defensive Growth | Aqr Global vs. Eip Growth And | Aqr Global vs. Stringer Growth Fund | Aqr Global vs. Small Pany Growth |
| Eaton Vance vs. Aqr Global Macro | Eaton Vance vs. Dreyfusstandish Global Fixed | Eaton Vance vs. T Rowe Price | Eaton Vance vs. Ab Global Bond |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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