Correlation Between Oshaughnessy Market and Eaton Vance

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

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

Diversification Opportunities for Oshaughnessy Market and Eaton Vance

0.37

Correlation Coefficient

Oshaughnessy Market  Eaton Vance

Weak diversification

The 3 months correlation between Oshaughnessy and Eaton is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Oshaughnessy Market Leaders and Eaton Vance Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Worldwide and Oshaughnessy Market 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 Oshaughnessy Market Leaders 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 Worldwide has no effect on the direction of Oshaughnessy Market i.e., Oshaughnessy Market and Eaton Vance go up and down completely randomly.

Pair Corralation between Oshaughnessy Market and Eaton Vance

Assuming the 90 days horizon Oshaughnessy Market Leaders is expected to generate 1.38 times more return on investment than Eaton Vance. However, Oshaughnessy Market is 1.38 times more volatile than Eaton Vance Worldwide. It trades about 0.05 of its potential returns per unit of risk. Eaton Vance Worldwide is currently generating about 0.01 per unit of risk. If you would invest  1,570  in Oshaughnessy Market Leaders on October 9, 2024 and sell it today you would earn a total of  392.00  from holding Oshaughnessy Market Leaders or generate 24.97% return on investment over 90 days.

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

Oshaughnessy Market Leaders  vs.  Eaton Vance Worldwide

Oshaughnessy Market

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Oshaughnessy Market Leaders has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Eaton Vance Worldwide

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance Worldwide has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Oshaughnessy Market and Eaton Vance

The main advantage of trading using opposite Oshaughnessy Market and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oshaughnessy Market 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 Oshaughnessy Market Leaders and Eaton Vance Worldwide 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.