Correlation Between Eaton Vance and Voya Emerging
Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Voya Emerging 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 Voya Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance Limited and Voya Emerging Markets, you can compare the effects of market volatilities on Eaton Vance and Voya Emerging 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 Voya Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Voya Emerging.
Diversification Opportunities for Eaton Vance and Voya Emerging
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eaton and Voya is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance Limited and Voya Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Emerging Markets 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 Limited are associated (or correlated) with Voya Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Emerging Markets has no effect on the direction of Eaton Vance i.e., Eaton Vance and Voya Emerging go up and down completely randomly.
Pair Corralation between Eaton Vance and Voya Emerging
Considering the 90-day investment horizon Eaton Vance is expected to generate 2.83 times less return on investment than Voya Emerging. But when comparing it to its historical volatility, Eaton Vance Limited is 1.4 times less risky than Voya Emerging. It trades about 0.05 of its potential returns per unit of risk. Voya Emerging Markets is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 503.00 in Voya Emerging Markets on December 2, 2024 and sell it today you would earn a total of 31.00 from holding Voya Emerging Markets or generate 6.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Eaton Vance Limited vs. Voya Emerging Markets
Performance |
Timeline |
Eaton Vance Limited |
Voya Emerging Markets |
Eaton Vance and Voya Emerging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eaton Vance and Voya Emerging
The main advantage of trading using opposite Eaton Vance and Voya Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Voya Emerging 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 Voya Emerging will offset losses from the drop in Voya Emerging's long position.Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Tax | Eaton Vance vs. Eaton Vance Risk |
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Check out your portfolio center.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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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