Correlation Between Eaton Vance and BSIG Old

Can any of the company-specific risk be diversified away by investing in both Eaton Vance and BSIG Old 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 BSIG Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eaton Vance National and BSIG Old, you can compare the effects of market volatilities on Eaton Vance and BSIG Old 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 BSIG Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and BSIG Old.

Diversification Opportunities for Eaton Vance and BSIG Old

0.0

Correlation Coefficient

Eaton Vance  BSIG Old

Pay attention - limited upside

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

Pair Corralation between Eaton Vance and BSIG Old

If you would invest  1,643  in Eaton Vance National on December 22, 2024 and sell it today you would earn a total of  34.00  from holding Eaton Vance National or generate 2.07% return on investment over 90 days.

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

Eaton Vance National  vs.  BSIG Old

Eaton Vance National

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance National are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Eaton Vance is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

BSIG Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days BSIG Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, BSIG Old is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Eaton Vance and BSIG Old

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

The idea behind Eaton Vance National and BSIG Old 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.