Correlation Between Siit Global and Eaton Vance

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

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

Diversification Opportunities for Siit Global and Eaton Vance

0.81

Correlation Coefficient

Siit Global  Eaton Vance

Very poor diversification

The 3 months correlation between Siit and Eaton is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Siit Global Managed and Eaton Vance Richard in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Richard and Siit Global 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 Siit Global Managed 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 Richard has no effect on the direction of Siit Global i.e., Siit Global and Eaton Vance go up and down completely randomly.

Pair Corralation between Siit Global and Eaton Vance

Assuming the 90 days horizon Siit Global Managed is expected to generate 0.83 times more return on investment than Eaton Vance. However, Siit Global Managed is 1.2 times less risky than Eaton Vance. It trades about 0.06 of its potential returns per unit of risk. Eaton Vance Richard is currently generating about 0.04 per unit of risk. If you would invest  1,017  in Siit Global Managed on December 3, 2024 and sell it today you would earn a total of  157.00  from holding Siit Global Managed or generate 15.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	99.7%
Values	Daily Returns

Siit Global Managed  vs.  Eaton Vance Richard

Siit Global Managed

Risk-Adjusted Performance

Very Weak

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

Eaton Vance Richard

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Siit Global and Eaton Vance

The main advantage of trading using opposite Siit Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Global 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 Siit Global Managed and Eaton Vance Richard 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.