Correlation Between Eaton Vance and Themes Global

Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Themes Global 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 Themes Global 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 Themes Global Systemically, you can compare the effects of market volatilities on Eaton Vance and Themes Global 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 Themes Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Themes Global.

Diversification Opportunities for Eaton Vance and Themes Global

-0.43

Correlation Coefficient

Eaton Vance  Themes Global

Very good diversification

The 3 months correlation between Eaton and Themes is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and Themes Global Systemically in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themes Global System 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 Themes Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themes Global System has no effect on the direction of Eaton Vance i.e., Eaton Vance and Themes Global go up and down completely randomly.

Pair Corralation between Eaton Vance and Themes Global

Considering the 90-day investment horizon Eaton Vance Enhanced is expected to under-perform the Themes Global. But the etf apears to be less risky and, when comparing its historical volatility, Eaton Vance Enhanced is 1.15 times less risky than Themes Global. The etf trades about -0.13 of its potential returns per unit of risk. The Themes Global Systemically is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  3,317  in Themes Global Systemically on December 27, 2024 and sell it today you would earn a total of  557.00  from holding Themes Global Systemically or generate 16.79% return on investment over 90 days.

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

Eaton Vance Enhanced  vs.  Themes Global Systemically

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.

Themes Global System

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Themes Global Systemically are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Themes Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eaton Vance and Themes Global

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

The idea behind Eaton Vance Enhanced and Themes Global Systemically 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.