Correlation Between China Region and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both China Region 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 China Region and Eaton Vance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Region Fund and Eaton Vance Greater, you can compare the effects of market volatilities on China Region 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 China Region with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Region and Eaton Vance.
Diversification Opportunities for China Region and Eaton Vance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Eaton is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Region Fund and Eaton Vance Greater in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Greater and China Region 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 China Region 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 Greater has no effect on the direction of China Region i.e., China Region and Eaton Vance go up and down completely randomly.
Pair Corralation between China Region and Eaton Vance
Assuming the 90 days horizon China Region Fund is expected to under-perform the Eaton Vance. In addition to that, China Region is 1.56 times more volatile than Eaton Vance Greater. It trades about -0.05 of its total potential returns per unit of risk. Eaton Vance Greater is currently generating about 0.1 per unit of volatility. If you would invest 3,177 in Eaton Vance Greater on September 2, 2024 and sell it today you would earn a total of 1,083 from holding Eaton Vance Greater or generate 34.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 8.06% |
| Values | Daily Returns |
China Region Fund vs. Eaton Vance Greater
Performance |
| Timeline |
| China Region |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eaton Vance Greater |
China Region and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Region and Eaton Vance
The main advantage of trading using opposite China Region and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Region 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.| China Region vs. Dreyfus Technology Growth | China Region vs. Mfs Technology Fund | China Region vs. Science Technology Fund | China Region vs. Science Technology 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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