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 INC, 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

0.25

Correlation Coefficient

Eaton Vance  GLOBAL

Modest diversification

The 3 months correlation between Eaton and GLOBAL is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Enhanced and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS INC 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 INC 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

Considering the 90-day investment horizon Eaton Vance Enhanced is expected to under-perform the GLOBAL. In addition to that, Eaton Vance is 1.86 times more volatile than GLOBAL PAYMENTS INC. It trades about -0.16 of its total potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.11 per unit of volatility. If you would invest  9,586  in GLOBAL PAYMENTS INC on December 30, 2024 and sell it today you would lose (406.00) from holding GLOBAL PAYMENTS INC or give up 4.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Eaton Vance Enhanced  vs.  GLOBAL PAYMENTS INC

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.

GLOBAL PAYMENTS INC

Risk-Adjusted Performance

Very Weak

Over the last 90 days GLOBAL PAYMENTS INC 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 INC 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.