Correlation Between Allianzgi Equity and Eaton Vance

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

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

Diversification Opportunities for Allianzgi Equity and Eaton Vance

0.89

Correlation Coefficient

Allianzgi Equity  Eaton Vance

Very poor diversification

The 3 months correlation between Allianzgi and Eaton is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Equity Convertible and Eaton Vance Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Senior and Allianzgi Equity 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 Allianzgi Equity Convertible 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 Senior has no effect on the direction of Allianzgi Equity i.e., Allianzgi Equity and Eaton Vance go up and down completely randomly.

Pair Corralation between Allianzgi Equity and Eaton Vance

Considering the 90-day investment horizon Allianzgi Equity Convertible is expected to under-perform the Eaton Vance. In addition to that, Allianzgi Equity is 2.69 times more volatile than Eaton Vance Senior. It trades about -0.1 of its total potential returns per unit of risk. Eaton Vance Senior is currently generating about -0.11 per unit of volatility. If you would invest  603.00  in Eaton Vance Senior on December 28, 2024 and sell it today you would lose (18.00) from holding Eaton Vance Senior or give up 2.99% of portfolio value over 90 days.

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

Allianzgi Equity Convertible  vs.  Eaton Vance Senior

Allianzgi Equity Con

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Equity Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest inconsistent performance, the Fund's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Eaton Vance Senior

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance Senior has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Allianzgi Equity and Eaton Vance

The main advantage of trading using opposite Allianzgi Equity and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Equity 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 Allianzgi Equity Convertible and Eaton Vance Senior 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 Anywhere module to track or share privately all of your investments from the convenience of any device.