Correlation Between Growth Strategy and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Growth Strategy 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 Growth Strategy and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Eaton Vance Balanced, you can compare the effects of market volatilities on Growth Strategy 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 Growth Strategy with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Eaton Vance.
Diversification Opportunities for Growth Strategy and Eaton Vance
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GROWTH and Eaton is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund and Eaton Vance Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Balanced and Growth Strategy 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 Growth Strategy 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 Balanced has no effect on the direction of Growth Strategy i.e., Growth Strategy and Eaton Vance go up and down completely randomly.
Pair Corralation between Growth Strategy and Eaton Vance
Assuming the 90 days horizon Growth Strategy Fund is expected to generate 0.97 times more return on investment than Eaton Vance. However, Growth Strategy Fund is 1.04 times less risky than Eaton Vance. It trades about 0.33 of its potential returns per unit of risk. Eaton Vance Balanced is currently generating about 0.28 per unit of risk. If you would invest 1,167 in Growth Strategy Fund on September 3, 2024 and sell it today you would earn a total of 39.00 from holding Growth Strategy Fund or generate 3.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Growth Strategy Fund vs. Eaton Vance Balanced
Performance |
| Timeline |
| Growth Strategy |
| Eaton Vance Balanced |
Growth Strategy and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and Eaton Vance
The main advantage of trading using opposite Growth Strategy and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy 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.| Growth Strategy vs. American Funds The | Growth Strategy vs. American Funds The | Growth Strategy vs. Income Fund Of | Growth Strategy vs. Income Fund Of |
| Eaton Vance vs. Auer Growth Fund | Eaton Vance vs. Growth Strategy Fund | Eaton Vance vs. T Rowe Price | Eaton Vance vs. Small Cap Stock |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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