Correlation Between Eaton Vance and Bank of New York

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Can any of the company-specific risk be diversified away by investing in both Eaton Vance and Bank of New York 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 Eaton Vance and Bank of New York into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eaton Vance New and Bank Of New, you can compare the effects of market volatilities on Eaton Vance and Bank of New York 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 Eaton Vance with a short position of Bank of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Bank of New York.

Diversification Opportunities for Eaton Vance and Bank of New York

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  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Eaton and Bank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance New and Bank Of New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of New York and Eaton Vance 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 Eaton Vance New are associated (or correlated) with Bank of New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of New York has no effect on the direction of Eaton Vance i.e., Eaton Vance and Bank of New York go up and down completely randomly.

Pair Corralation between Eaton Vance and Bank of New York

If you would invest  5,555  in Bank Of New on December 29, 2023 and sell it today you would earn a total of  138.00  from holding Bank Of New or generate 2.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Eaton Vance New  vs.  Bank Of New

 Performance 
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Eaton Vance New 

Risk-Adjusted Performance

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Over the last 90 days Eaton Vance New has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, Eaton Vance is not utilizing all of its potentials. The latest stock price chaos, may contribute to medium-term losses for the stakeholders.
Bank of New York 

Risk-Adjusted Performance

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Compared to the overall equity markets, risk-adjusted returns on investments in Bank Of New are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent forward-looking signals, Bank of New York may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Eaton Vance and Bank of New York Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eaton Vance and Bank of New York

The main advantage of trading using opposite Eaton Vance and Bank of New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, Bank of New York 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 Bank of New York will offset losses from the drop in Bank of New York's long position.
The idea behind Eaton Vance New and Bank Of 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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