Correlation Between Channing Intrinsic and Eaton Vance

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

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

Diversification Opportunities for Channing Intrinsic and Eaton Vance

0.74

Correlation Coefficient

Channing Intrinsic  Eaton Vance

Poor diversification

The 3 months correlation between Channing and Eaton is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Channing Intrinsic Value and Eaton Vance Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Multi and Channing Intrinsic 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 Channing Intrinsic Value 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 Multi has no effect on the direction of Channing Intrinsic i.e., Channing Intrinsic and Eaton Vance go up and down completely randomly.

Pair Corralation between Channing Intrinsic and Eaton Vance

Assuming the 90 days horizon Channing Intrinsic Value is expected to generate 6.41 times more return on investment than Eaton Vance. However, Channing Intrinsic is 6.41 times more volatile than Eaton Vance Multi Strategy. It trades about 0.04 of its potential returns per unit of risk. Eaton Vance Multi Strategy is currently generating about 0.17 per unit of risk. If you would invest  897.00  in Channing Intrinsic Value on October 4, 2024 and sell it today you would earn a total of  195.00  from holding Channing Intrinsic Value or generate 21.74% return on investment over 90 days.

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

Channing Intrinsic Value  vs.  Eaton Vance Multi Strategy

Channing Intrinsic Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Channing Intrinsic Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong essential indicators, Channing Intrinsic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eaton Vance Multi

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Multi Strategy are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Eaton Vance is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Channing Intrinsic and Eaton Vance

The main advantage of trading using opposite Channing Intrinsic and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Channing Intrinsic 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 Channing Intrinsic Value and Eaton Vance Multi Strategy 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.