Correlation Between Eaton Vance and SPDR Portfolio

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

Diversification Opportunities for Eaton Vance and SPDR Portfolio

-0.57

Correlation Coefficient

Eaton Vance  SPDR Portfolio

Excellent diversification

The 3 months correlation between Eaton and SPDR is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and SPDR Portfolio Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Portfolio Europe 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 SPDR Portfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Portfolio Europe has no effect on the direction of Eaton Vance i.e., Eaton Vance and SPDR Portfolio go up and down completely randomly.

Pair Corralation between Eaton Vance and SPDR Portfolio

Considering the 90-day investment horizon Eaton Vance Enhanced is expected to under-perform the SPDR Portfolio. In addition to that, Eaton Vance is 1.07 times more volatile than SPDR Portfolio Europe. It trades about -0.11 of its total potential returns per unit of risk. SPDR Portfolio Europe is currently generating about 0.2 per unit of volatility. If you would invest  3,995  in SPDR Portfolio Europe on December 27, 2024 and sell it today you would earn a total of  472.00  from holding SPDR Portfolio Europe or generate 11.81% 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.  SPDR Portfolio Europe

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.

SPDR Portfolio Europe

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Portfolio Europe are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, SPDR Portfolio may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Eaton Vance and SPDR Portfolio

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

The idea behind Eaton Vance Enhanced and SPDR Portfolio Europe 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.