Correlation Between Eagle Capital and Eaton Vance

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

By analyzing existing cross correlation between Eagle Capital Growth and Eaton Vance New, you can compare the effects of market volatilities on Eagle Capital and Eaton Vance 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 Eagle Capital with a short position of Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Eaton Vance.

Diversification Opportunities for Eagle Capital and Eaton Vance

-0.18

Correlation Coefficient

Eagle Capital  Eaton Vance

Good diversification

The 3 months correlation between Eagle and Eaton is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth and Eaton Vance New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance New and Eagle Capital 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 Eagle Capital Growth are associated (or correlated) with Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance New has no effect on the direction of Eagle Capital i.e., Eagle Capital and Eaton Vance go up and down completely randomly.

Pair Corralation between Eagle Capital and Eaton Vance

Considering the 90-day investment horizon Eagle Capital is expected to generate 1.09 times less return on investment than Eaton Vance. In addition to that, Eagle Capital is 2.77 times more volatile than Eaton Vance New. It trades about 0.11 of its total potential returns per unit of risk. Eaton Vance New is currently generating about 0.33 per unit of volatility. If you would invest  942.00  in Eaton Vance New on August 31, 2024 and sell it today you would earn a total of  47.00  from holding Eaton Vance New or generate 4.99% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Eagle Capital Growth  vs.  Eaton Vance New

Eagle Capital Growth

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Capital Growth are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Eagle Capital may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Eaton Vance New

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance New are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Eaton Vance is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eagle Capital and Eaton Vance

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

The idea behind Eagle Capital Growth and Eaton Vance New 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.