Correlation Between Siit Global and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Siit 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 Siit 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 Siit Global Managed and Eaton Vance Core, you can compare the effects of market volatilities on Siit 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 Siit Global with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Global and Eaton Vance.
Diversification Opportunities for Siit Global and Eaton Vance
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siit and Eaton is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Eaton Vance Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Core and Siit 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 Siit Global Managed 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 Core has no effect on the direction of Siit Global i.e., Siit Global and Eaton Vance go up and down completely randomly.
Pair Corralation between Siit Global and Eaton Vance
Assuming the 90 days horizon Siit Global Managed is expected to generate 1.48 times more return on investment than Eaton Vance. However, Siit Global is 1.48 times more volatile than Eaton Vance Core. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance Core is currently generating about 0.04 per unit of risk. If you would invest 1,105 in Siit Global Managed on October 21, 2024 and sell it today you would earn a total of 14.00 from holding Siit Global Managed or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Global Managed vs. Eaton Vance Core
Performance |
| Timeline |
| Siit Global Managed |
| Eaton Vance Core |
Siit Global and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Global and Eaton Vance
The main advantage of trading using opposite Siit Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit 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.| Siit Global vs. Lord Abbett Diversified | Siit Global vs. Guggenheim Diversified Income | Siit Global vs. Jhancock Diversified Macro | Siit Global vs. Pimco Diversified Income |
| Eaton Vance vs. Eaton Vance Msschsts | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal | Eaton Vance vs. Eaton Vance Municipal |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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