Correlation Between Emerging Markets and Eaton Vance

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

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

Diversification Opportunities for Emerging Markets and Eaton Vance

0.07

Correlation Coefficient

Emerging Markets  Eaton Vance

Significant diversification

The 3 months correlation between Emerging and Eaton is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Markets Leaders and Eaton Vance Georgia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Georgia and Emerging Markets 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 Emerging Markets Leaders 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 Georgia has no effect on the direction of Emerging Markets i.e., Emerging Markets and Eaton Vance go up and down completely randomly.

Pair Corralation between Emerging Markets and Eaton Vance

Assuming the 90 days horizon Emerging Markets is expected to generate 1.71 times less return on investment than Eaton Vance. In addition to that, Emerging Markets is 6.71 times more volatile than Eaton Vance Georgia. It trades about 0.02 of its total potential returns per unit of risk. Eaton Vance Georgia is currently generating about 0.18 per unit of volatility. If you would invest  799.00  in Eaton Vance Georgia on September 11, 2025 and sell it today you would earn a total of  10.00  from holding Eaton Vance Georgia or generate 1.25% return on investment over 90 days.

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

Emerging Markets Leaders  vs.  Eaton Vance Georgia

Emerging Markets Leaders

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Emerging Markets Leaders are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Emerging Markets is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eaton Vance Georgia

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Georgia are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic 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 Emerging Markets and Eaton Vance

The main advantage of trading using opposite Emerging Markets and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Markets 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 Emerging Markets Leaders and Eaton Vance Georgia 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.