Correlation Between Simt Real and Eaton Vance

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

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

Diversification Opportunities for Simt Real and Eaton Vance

0.43

Correlation Coefficient

Simt Real  Eaton Vance

Very weak diversification

The 3 months correlation between Simt and Eaton is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Simt Real Estate 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 Simt Real 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 Simt Real Estate 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 Simt Real i.e., Simt Real and Eaton Vance go up and down completely randomly.

Pair Corralation between Simt Real and Eaton Vance

Assuming the 90 days horizon Simt Real Estate is expected to generate 1.17 times more return on investment than Eaton Vance. However, Simt Real is 1.17 times more volatile than Eaton Vance Worldwide. It trades about -0.12 of its potential returns per unit of risk. Eaton Vance Worldwide is currently generating about -0.25 per unit of risk. If you would invest  1,748  in Simt Real Estate on September 25, 2024 and sell it today you would lose (135.00) from holding Simt Real Estate or give up 7.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Simt Real Estate  vs.  Eaton Vance Worldwide

Simt Real Estate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Simt Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest unfluctuating performance, the Fund's basic 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 January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Simt Real and Eaton Vance

The main advantage of trading using opposite Simt Real and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simt Real 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 Simt Real Estate 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.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.