Correlation Between Eagle Growth and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Eagle Growth and Eagle Mid 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 Eagle Growth and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Growth Income and Eagle Mid Cap, you can compare the effects of market volatilities on Eagle Growth and Eagle Mid 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 Eagle Growth with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Eagle Mid.
Diversification Opportunities for Eagle Growth and Eagle Mid
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Eagle is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and Eagle Growth 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 Eagle Growth Income are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Eagle Growth i.e., Eagle Growth and Eagle Mid go up and down completely randomly.
Pair Corralation between Eagle Growth and Eagle Mid
Assuming the 90 days horizon Eagle Growth Income is expected to generate 0.69 times more return on investment than Eagle Mid. However, Eagle Growth Income is 1.46 times less risky than Eagle Mid. It trades about -0.12 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about -0.16 per unit of risk. If you would invest 2,160 in Eagle Growth Income on January 31, 2024 and sell it today you would lose (38.00) from holding Eagle Growth Income or give up 1.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Eagle Growth Income vs. Eagle Mid Cap
Performance |
Timeline |
Eagle Growth Me |
Eagle Mid Cap |
Eagle Growth and Eagle Mid Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Growth and Eagle Mid
The main advantage of trading using opposite Eagle Growth and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Growth position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Chartwell Small Cap | Eagle Growth vs. Chartwell Small Cap | Eagle Growth vs. First Trust Energy |
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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.
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