Correlation Between Eaton Vance and Columbia Greater

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

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

Diversification Opportunities for Eaton Vance and Columbia Greater

0.69

Correlation Coefficient

Eaton Vance  Columbia Greater

Poor diversification

The 3 months correlation between Eaton and Columbia is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Greater and Columbia Greater China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Greater China 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 Greater are associated (or correlated) with Columbia Greater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Greater China has no effect on the direction of Eaton Vance i.e., Eaton Vance and Columbia Greater go up and down completely randomly.

Pair Corralation between Eaton Vance and Columbia Greater

Assuming the 90 days horizon Eaton Vance Greater is expected to under-perform the Columbia Greater. But the mutual fund apears to be less risky and, when comparing its historical volatility, Eaton Vance Greater is 2.41 times less risky than Columbia Greater. The mutual fund trades about -0.17 of its potential returns per unit of risk. The Columbia Greater China is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  3,337  in Columbia Greater China on October 7, 2024 and sell it today you would lose (35.00) from holding Columbia Greater China or give up 1.05% of portfolio value over 90 days.

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

Eaton Vance Greater  vs.  Columbia Greater China

Eaton Vance Greater

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance Greater has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Columbia Greater China

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Columbia Greater China has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Eaton Vance and Columbia Greater

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

The idea behind Eaton Vance Greater and Columbia Greater China 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .