Correlation Between DATA Communications and Eaton Vance

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

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

Diversification Opportunities for DATA Communications and Eaton Vance

-0.01

Correlation Coefficient

DATA Communications  Eaton Vance

Good diversification

The 3 months correlation between DATA and Eaton is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding DATA Communications Management and Eaton Vance California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance California and DATA Communications 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 DATA Communications Management 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 California has no effect on the direction of DATA Communications i.e., DATA Communications and Eaton Vance go up and down completely randomly.

Pair Corralation between DATA Communications and Eaton Vance

Assuming the 90 days horizon DATA Communications Management is expected to generate 5.25 times more return on investment than Eaton Vance. However, DATA Communications is 5.25 times more volatile than Eaton Vance California. It trades about 0.11 of its potential returns per unit of risk. Eaton Vance California is currently generating about 0.23 per unit of risk. If you would invest  110.00  in DATA Communications Management on September 7, 2025 and sell it today you would earn a total of  20.00  from holding DATA Communications Management or generate 18.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	59.38%
Values	Daily Returns

DATA Communications Management  vs.  Eaton Vance California

DATA Communications

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in DATA Communications Management are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain fundamental indicators, DATA Communications reported solid returns over the last few months and may actually be approaching a breakup point.

Eaton Vance California

Risk-Adjusted Performance

Solid

Over the last 90 days Eaton Vance California has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very fragile basic indicators, Eaton Vance may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with DATA Communications and Eaton Vance

The main advantage of trading using opposite DATA Communications and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DATA Communications 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 DATA Communications Management and Eaton Vance California 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.

Check out your portfolio center.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.