Correlation Between Eaton Vance and Julius Bär

Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Julius Bär 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 Julius Bär 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 Julius Br Gruppe, you can compare the effects of market volatilities on Eaton Vance and Julius Bär 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 Julius Bär. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Julius Bär.

Diversification Opportunities for Eaton Vance and Julius Bär

0.66

Correlation Coefficient

Eaton Vance  Julius Bär

Poor diversification

The 3 months correlation between Eaton and Julius is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Tax and Julius Br Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Br Gruppe 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 Julius Bär. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Br Gruppe has no effect on the direction of Eaton Vance i.e., Eaton Vance and Julius Bär go up and down completely randomly.

Pair Corralation between Eaton Vance and Julius Bär

Considering the 90-day investment horizon Eaton Vance is expected to generate 1.12 times less return on investment than Julius Bär. But when comparing it to its historical volatility, Eaton Vance Tax is 3.52 times less risky than Julius Bär. It trades about 0.17 of its potential returns per unit of risk. Julius Br Gruppe is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  4,865  in Julius Br Gruppe on September 4, 2024 and sell it today you would earn a total of  1,566  from holding Julius Br Gruppe or generate 32.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	97.98%
Values	Daily Returns

Eaton Vance Tax  vs.  Julius Br Gruppe

Eaton Vance Tax

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Tax are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly fragile basic indicators, Eaton Vance may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Julius Br Gruppe

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Br Gruppe are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Julius Bär may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Eaton Vance and Julius Bär

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

The idea behind Eaton Vance Tax and Julius Br Gruppe 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.