Correlation Between Advanced Micro and Eaton Vance

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

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

Diversification Opportunities for Advanced Micro and Eaton Vance

0.75

Correlation Coefficient

Advanced Micro  Eaton Vance

Poor diversification

The 3 months correlation between Advanced and Eaton is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Micro Devices and Eaton Vance Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Short and Advanced Micro 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 Advanced Micro Devices 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 Short has no effect on the direction of Advanced Micro i.e., Advanced Micro and Eaton Vance go up and down completely randomly.

Pair Corralation between Advanced Micro and Eaton Vance

Assuming the 90 days trading horizon Advanced Micro Devices is expected to generate 31.72 times more return on investment than Eaton Vance. However, Advanced Micro is 31.72 times more volatile than Eaton Vance Short. It trades about 0.15 of its potential returns per unit of risk. Eaton Vance Short is currently generating about 0.31 per unit of risk. If you would invest  3,095  in Advanced Micro Devices on August 19, 2025 and sell it today you would earn a total of  1,346  from holding Advanced Micro Devices or generate 43.49% return on investment over 90 days.

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

Advanced Micro Devices  vs.  Eaton Vance Short

Advanced Micro Devices

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Advanced Micro Devices are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal fundamental indicators, Advanced Micro displayed solid returns over the last few months and may actually be approaching a breakup point.

Eaton Vance Short

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Short are ranked lower than 24 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward 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 Advanced Micro and Eaton Vance

The main advantage of trading using opposite Advanced Micro and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Micro 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 Advanced Micro Devices and Eaton Vance Short 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.