Correlation Between Eaton Vance and Global Stock
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Global Stock 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 Eaton Vance and Global Stock into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Tax Managed and Global Stock Fund, you can compare the effects of market volatilities on Eaton Vance and Global Stock 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 Eaton Vance with a short position of Global Stock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Global Stock.
Diversification Opportunities for Eaton Vance and Global Stock
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eaton and Global is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax Managed and Global Stock Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Stock and Eaton Vance 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 Eaton Vance Tax Managed are associated (or correlated) with Global Stock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Stock has no effect on the direction of Eaton Vance i.e., Eaton Vance and Global Stock go up and down completely randomly.
Pair Corralation between Eaton Vance and Global Stock
Assuming the 90 days horizon Eaton Vance Tax Managed is expected to generate 0.95 times more return on investment than Global Stock. However, Eaton Vance Tax Managed is 1.05 times less risky than Global Stock. It trades about 0.09 of its potential returns per unit of risk. Global Stock Fund is currently generating about 0.01 per unit of risk. If you would invest 1,757 in Eaton Vance Tax Managed on June 6, 2025 and sell it today you would earn a total of 59.00 from holding Eaton Vance Tax Managed or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eaton Vance Tax Managed vs. Global Stock Fund
Performance |
| Timeline |
| Eaton Vance Tax |
| Global Stock |
Eaton Vance and Global Stock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eaton Vance and Global Stock
The main advantage of trading using opposite Eaton Vance and Global Stock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Global Stock 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 Global Stock will offset losses from the drop in Global Stock's long position.| Eaton Vance vs. Eaton Vance Richard | Eaton Vance vs. Eaton Vance Small Cap | Eaton Vance vs. Eaton Vance Short | Eaton Vance vs. Eaton Vance South |
| Global Stock vs. Invesco Disciplined Equity | Global Stock vs. T Rowe Price | Global Stock vs. Global Stock Fund | Global Stock vs. Lord Abbett Developing |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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