Correlation Between Advantage Solutions and Eaton Vance

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

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

Diversification Opportunities for Advantage Solutions and Eaton Vance

0.19

Correlation Coefficient

Advantage Solutions  Eaton Vance

Average diversification

The 3 months correlation between Advantage and Eaton is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Eaton Vance Atlanta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Atlanta and Advantage Solutions 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 Advantage Solutions 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 Atlanta has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Eaton Vance go up and down completely randomly.

Pair Corralation between Advantage Solutions and Eaton Vance

Considering the 90-day investment horizon Advantage Solutions is expected to generate 3.26 times more return on investment than Eaton Vance. However, Advantage Solutions is 3.26 times more volatile than Eaton Vance Atlanta. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance Atlanta is currently generating about -0.23 per unit of risk. If you would invest  424.00  in Advantage Solutions on January 25, 2024 and sell it today you would earn a total of  33.00  from holding Advantage Solutions or generate 7.78% return on investment over 90 days.

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

Advantage Solutions  vs.  Eaton Vance Atlanta

Advantage Solutions

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Advantage Solutions are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Advantage Solutions showed solid returns over the last few months and may actually be approaching a breakup point.

Eaton Vance Atlanta

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Atlanta 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 Advantage Solutions and Eaton Vance

The main advantage of trading using opposite Advantage Solutions and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions 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 Advantage Solutions and Eaton Vance Atlanta 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.