Correlation Between Eaton Vance and GCM Grosvenor

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

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

Diversification Opportunities for Eaton Vance and GCM Grosvenor

0.12

Correlation Coefficient

Eaton Vance  GCM Grosvenor

Average diversification

The 3 months correlation between Eaton and GCM is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance National and GCM Grosvenor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCM Grosvenor and Eaton Vance 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 Eaton Vance National are associated (or correlated) with GCM Grosvenor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCM Grosvenor has no effect on the direction of Eaton Vance i.e., Eaton Vance and GCM Grosvenor go up and down completely randomly.

Pair Corralation between Eaton Vance and GCM Grosvenor

Considering the 90-day investment horizon Eaton Vance National is expected to generate 0.43 times more return on investment than GCM Grosvenor. However, Eaton Vance National is 2.32 times less risky than GCM Grosvenor. It trades about -0.07 of its potential returns per unit of risk. GCM Grosvenor is currently generating about -0.09 per unit of risk. If you would invest  1,636  in Eaton Vance National on May 3, 2025 and sell it today you would lose (33.00) from holding Eaton Vance National or give up 2.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Eaton Vance National  vs.  GCM Grosvenor

Eaton Vance National

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eaton Vance National has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

GCM Grosvenor

Risk-Adjusted Performance

Very Weak

Over the last 90 days GCM Grosvenor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Eaton Vance and GCM Grosvenor

The main advantage of trading using opposite Eaton Vance and GCM Grosvenor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance position performs unexpectedly, GCM Grosvenor 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 GCM Grosvenor will offset losses from the drop in GCM Grosvenor's long position.

The idea behind Eaton Vance National and GCM Grosvenor 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.