Correlation Between Eaton Vance and Allianzgi Nfj

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

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

Diversification Opportunities for Eaton Vance and Allianzgi Nfj

-0.71

Correlation Coefficient

Eaton Vance  Allianzgi Nfj

Pay attention - limited upside

The 3 months correlation between Eaton and Allianzgi is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Worldwide and Allianzgi Nfj Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Small 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 Worldwide are associated (or correlated) with Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Small has no effect on the direction of Eaton Vance i.e., Eaton Vance and Allianzgi Nfj go up and down completely randomly.

Pair Corralation between Eaton Vance and Allianzgi Nfj

Assuming the 90 days horizon Eaton Vance Worldwide is expected to generate 0.5 times more return on investment than Allianzgi Nfj. However, Eaton Vance Worldwide is 2.01 times less risky than Allianzgi Nfj. It trades about 0.03 of its potential returns per unit of risk. Allianzgi Nfj Small Cap is currently generating about 0.01 per unit of risk. If you would invest  1,299  in Eaton Vance Worldwide on September 3, 2024 and sell it today you would earn a total of  143.00  from holding Eaton Vance Worldwide or generate 11.01% return on investment over 90 days.

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

Eaton Vance Worldwide  vs.  Allianzgi Nfj Small Cap

Eaton Vance Worldwide

Risk-Adjusted Performance

0 of 100

Very Weak

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

Allianzgi Nfj Small

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Nfj Small Cap are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Nfj may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Eaton Vance and Allianzgi Nfj

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

The idea behind Eaton Vance Worldwide and Allianzgi Nfj Small Cap 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.