Correlation Between Eaton Vance and JPMorgan BetaBuilders

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

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

Diversification Opportunities for Eaton Vance and JPMorgan BetaBuilders

-0.66

Correlation Coefficient

Eaton Vance  JPMorgan BetaBuilders

Excellent diversification

The 3 months correlation between Eaton and JPMorgan is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and JPMorgan BetaBuilders Aggregat in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMorgan BetaBuilders 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 Enhanced are associated (or correlated) with JPMorgan BetaBuilders. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMorgan BetaBuilders has no effect on the direction of Eaton Vance i.e., Eaton Vance and JPMorgan BetaBuilders go up and down completely randomly.

Pair Corralation between Eaton Vance and JPMorgan BetaBuilders

Considering the 90-day investment horizon Eaton Vance Enhanced is expected to under-perform the JPMorgan BetaBuilders. In addition to that, Eaton Vance is 3.73 times more volatile than JPMorgan BetaBuilders Aggregate. It trades about -0.16 of its total potential returns per unit of risk. JPMorgan BetaBuilders Aggregate is currently generating about 0.13 per unit of volatility. If you would invest  4,493  in JPMorgan BetaBuilders Aggregate on December 28, 2024 and sell it today you would earn a total of  109.00  from holding JPMorgan BetaBuilders Aggregate or generate 2.43% return on investment over 90 days.

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

Eaton Vance Enhanced  vs.  JPMorgan BetaBuilders Aggregat

Eaton Vance Enhanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Enhanced has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

JPMorgan BetaBuilders

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in JPMorgan BetaBuilders Aggregate are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, JPMorgan BetaBuilders is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Eaton Vance and JPMorgan BetaBuilders

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

The idea behind Eaton Vance Enhanced and JPMorgan BetaBuilders Aggregate 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.