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
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and Eaton is 0.12. 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
If you would invest 527.00 in China Region Fund on August 26, 2024 and sell it today you would earn a total of 0.00 from holding China Region Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| 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. Calamos Dynamic Convertible | China Region vs. Harbor Vertible Securities | China Region vs. Fidelity Vertible Securities | China Region vs. Absolute Convertible Arbitrage |
| Eaton Vance vs. Columbia Greater China | Eaton Vance vs. Guinness Atkinson China | Eaton Vance vs. Aberdeen China Oppty | Eaton Vance vs. Eaton Vance Greater |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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