Correlation Between Eaton Vance and OneAscent International

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

Diversification Opportunities for Eaton Vance and OneAscent International

-0.4

Correlation Coefficient

Eaton Vance  OneAscent International

Very good diversification

The 3 months correlation between Eaton and OneAscent is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and OneAscent International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneAscent International 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 OneAscent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneAscent International has no effect on the direction of Eaton Vance i.e., Eaton Vance and OneAscent International go up and down completely randomly.

Pair Corralation between Eaton Vance and OneAscent International

Considering the 90-day investment horizon Eaton Vance Enhanced is expected to under-perform the OneAscent International. In addition to that, Eaton Vance is 1.22 times more volatile than OneAscent International Equity. It trades about -0.16 of its total potential returns per unit of risk. OneAscent International Equity is currently generating about 0.09 per unit of volatility. If you would invest  3,215  in OneAscent International Equity on December 29, 2024 and sell it today you would earn a total of  151.00  from holding OneAscent International Equity or generate 4.7% 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.  OneAscent International Equity

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.

OneAscent International

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OneAscent International Equity are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, OneAscent International is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Eaton Vance and OneAscent International

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

The idea behind Eaton Vance Enhanced and OneAscent International Equity 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.