Correlation Between Eaton Vance and SPDR Bloomberg

Can any of the company-specific risk be diversified away by investing in both Eaton Vance and SPDR Bloomberg 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 Bloomberg 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 Bloomberg 1 10, you can compare the effects of market volatilities on Eaton Vance and SPDR Bloomberg 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 Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and SPDR Bloomberg.

Diversification Opportunities for Eaton Vance and SPDR Bloomberg

0.12

Correlation Coefficient

Eaton Vance  SPDR Bloomberg

Average diversification

The 3 months correlation between Eaton and SPDR is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and SPDR Bloomberg 1 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Bloomberg 1 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 Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Bloomberg 1 has no effect on the direction of Eaton Vance i.e., Eaton Vance and SPDR Bloomberg go up and down completely randomly.

Pair Corralation between Eaton Vance and SPDR Bloomberg

Considering the 90-day investment horizon Eaton Vance is expected to generate 6.2 times less return on investment than SPDR Bloomberg. In addition to that, Eaton Vance is 5.57 times more volatile than SPDR Bloomberg 1 10. It trades about 0.01 of its total potential returns per unit of risk. SPDR Bloomberg 1 10 is currently generating about 0.18 per unit of volatility. If you would invest  1,863  in SPDR Bloomberg 1 10 on December 1, 2024 and sell it today you would earn a total of  39.00  from holding SPDR Bloomberg 1 10 or generate 2.09% return on investment over 90 days.

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

Eaton Vance Enhanced  vs.  SPDR Bloomberg 1 10

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 comparatively stable basic indicators, Eaton Vance is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

SPDR Bloomberg 1

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SPDR Bloomberg 1 10 are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, SPDR Bloomberg is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eaton Vance and SPDR Bloomberg

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

The idea behind Eaton Vance Enhanced and SPDR Bloomberg 1 10 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.