Correlation Between Eaton Vance and Blackstone Gso

Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Blackstone Gso 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 Blackstone Gso into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eaton Vance Floating and Blackstone Gso Long, you can compare the effects of market volatilities on Eaton Vance and Blackstone Gso 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 Blackstone Gso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Blackstone Gso.

Diversification Opportunities for Eaton Vance and Blackstone Gso

0.76

Correlation Coefficient

Eaton Vance  Blackstone Gso

Poor diversification

The 3 months correlation between Eaton and Blackstone is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Floating and Blackstone Gso Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Long 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 Floating are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Long has no effect on the direction of Eaton Vance i.e., Eaton Vance and Blackstone Gso go up and down completely randomly.

Pair Corralation between Eaton Vance and Blackstone Gso

Considering the 90-day investment horizon Eaton Vance Floating is expected to under-perform the Blackstone Gso. But the stock apears to be less risky and, when comparing its historical volatility, Eaton Vance Floating is 1.6 times less risky than Blackstone Gso. The stock trades about -0.01 of its potential returns per unit of risk. The Blackstone Gso Long is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,267  in Blackstone Gso Long on September 29, 2024 and sell it today you would earn a total of  1.00  from holding Blackstone Gso Long or generate 0.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Eaton Vance Floating  vs.  Blackstone Gso Long

Eaton Vance Floating

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Floating are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Blackstone Gso Long

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Blackstone Gso Long are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eaton Vance and Blackstone Gso

The main advantage of trading using opposite Eaton Vance and Blackstone Gso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Blackstone Gso 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 Blackstone Gso will offset losses from the drop in Blackstone Gso's long position.

The idea behind Eaton Vance Floating and Blackstone Gso Long pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.