Correlation Between Templeton Global and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both Templeton 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 Templeton 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 Templeton Global Bond and Eaton Vance Floating Rate, you can compare the effects of market volatilities on Templeton 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 Templeton Global with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Templeton Global and Eaton Vance.
Diversification Opportunities for Templeton Global and Eaton Vance
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Templeton and Eaton is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Templeton Global Bond and Eaton Vance Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Floating and Templeton 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 Templeton Global Bond 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 Floating has no effect on the direction of Templeton Global i.e., Templeton Global and Eaton Vance go up and down completely randomly.
Pair Corralation between Templeton Global and Eaton Vance
Assuming the 90 days horizon Templeton Global Bond is expected to under-perform the Eaton Vance. In addition to that, Templeton Global is 3.03 times more volatile than Eaton Vance Floating Rate. It trades about -0.01 of its total potential returns per unit of risk. Eaton Vance Floating Rate is currently generating about 0.18 per unit of volatility. If you would invest 708.00 in Eaton Vance Floating Rate on November 27, 2024 and sell it today you would earn a total of 127.00 from holding Eaton Vance Floating Rate or generate 17.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Templeton Global Bond vs. Eaton Vance Floating Rate
Performance |
| Timeline |
| Templeton Global Bond |
| Eaton Vance Floating |
Templeton Global and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Templeton Global and Eaton Vance
The main advantage of trading using opposite Templeton Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Templeton 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.| Templeton Global vs. Dreyfusstandish Global Fixed | Templeton Global vs. Tax Managed International Equity | Templeton Global vs. T Rowe Price | Templeton Global vs. Ultra Short Fixed Income |
| Eaton Vance vs. Jpmorgan Strategic Income | Eaton Vance vs. Eaton Vance Global | Eaton Vance vs. Pioneer Strategic Income | Eaton Vance vs. Templeton 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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