Correlation Between Eaton Vance and Global

Can any of the company-specific risk be diversified away by investing in both Eaton Vance and 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 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 Global Payments 415, you can compare the effects of market volatilities on Eaton Vance and 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 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Global.

Diversification Opportunities for Eaton Vance and Global

0.0

Correlation Coefficient

Eaton Vance  Global

Pay attention - limited upside

The 3 months correlation between Eaton and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and Global Payments 415 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Payments 415 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 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Payments 415 has no effect on the direction of Eaton Vance i.e., Eaton Vance and Global go up and down completely randomly.

Pair Corralation between Eaton Vance and Global

If you would invest  2,249  in Eaton Vance Enhanced on November 20, 2024 and sell it today you would earn a total of  200.00  from holding Eaton Vance Enhanced or generate 8.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eaton Vance Enhanced  vs.  Global Payments 415

Eaton Vance Enhanced

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Enhanced are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Eaton Vance may actually be approaching a critical reversion point that can send shares even higher in March 2025.

Global Payments 415

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Payments 415 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eaton Vance and Global

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

The idea behind Eaton Vance Enhanced and Global Payments 415 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.