Correlation Between Eaton Vance and Hargreaves Lansdown

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

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

Diversification Opportunities for Eaton Vance and Hargreaves Lansdown

0.0

Correlation Coefficient

Eaton Vance  Hargreaves Lansdown

Pay attention - limited upside

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

Pair Corralation between Eaton Vance and Hargreaves Lansdown

If you would invest  2,516  in Eaton Vance Tax on October 24, 2024 and sell it today you would earn a total of  90.00  from holding Eaton Vance Tax or generate 3.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

Eaton Vance Tax  vs.  Hargreaves Lansdown PLC

Eaton Vance Tax

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Tax are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, Eaton Vance is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Hargreaves Lansdown PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hargreaves Lansdown PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Hargreaves Lansdown 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 Hargreaves Lansdown

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

The idea behind Eaton Vance Tax and Hargreaves Lansdown PLC 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.