Correlation Between Themes Global and Eaton Vance

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

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

Diversification Opportunities for Themes Global and Eaton Vance

0.96

Correlation Coefficient

Themes Global  Eaton Vance

Almost no diversification

The 3 months correlation between Themes and Eaton is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Themes Global Systemically and Eaton Vance Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Enhanced and Themes Global 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 Themes Global Systemically 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 Enhanced has no effect on the direction of Themes Global i.e., Themes Global and Eaton Vance go up and down completely randomly.

Pair Corralation between Themes Global and Eaton Vance

Given the investment horizon of 90 days Themes Global Systemically is expected to generate 1.2 times more return on investment than Eaton Vance. However, Themes Global is 1.2 times more volatile than Eaton Vance Enhanced. It trades about 0.28 of its potential returns per unit of risk. Eaton Vance Enhanced is currently generating about 0.18 per unit of risk. If you would invest  3,974  in Themes Global Systemically on May 12, 2025 and sell it today you would earn a total of  635.00  from holding Themes Global Systemically or generate 15.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Themes Global Systemically  vs.  Eaton Vance Enhanced

Themes Global System

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Themes Global Systemically are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal forward indicators, Themes Global sustained solid returns over the last few months and may actually be approaching a breakup point.

Eaton Vance Enhanced

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eaton Vance Enhanced are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Eaton Vance may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Themes Global and Eaton Vance

The main advantage of trading using opposite Themes Global and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Themes Global 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 Themes Global Systemically and Eaton Vance Enhanced 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.