Correlation Between Ancorathelen Small and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Ancorathelen Small and Eagle Growth 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 Ancorathelen Small and Eagle Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ancorathelen Small Mid Cap and Eagle Growth Income, you can compare the effects of market volatilities on Ancorathelen Small and Eagle Growth 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 Ancorathelen Small with a short position of Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ancorathelen Small and Eagle Growth.
Diversification Opportunities for Ancorathelen Small and Eagle Growth
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ancorathelen and Eagle is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Ancorathelen Small Mid Cap and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income and Ancorathelen Small 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 Ancorathelen Small Mid Cap are associated (or correlated) with Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Ancorathelen Small i.e., Ancorathelen Small and Eagle Growth go up and down completely randomly.
Pair Corralation between Ancorathelen Small and Eagle Growth
Assuming the 90 days horizon Ancorathelen Small Mid Cap is expected to generate 1.61 times more return on investment than Eagle Growth. However, Ancorathelen Small is 1.61 times more volatile than Eagle Growth Income. It trades about 0.13 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.16 per unit of risk. If you would invest 1,894 in Ancorathelen Small Mid Cap on September 1, 2024 and sell it today you would earn a total of 380.00 from holding Ancorathelen Small Mid Cap or generate 20.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Ancorathelen Small Mid Cap vs. Eagle Growth Income
Performance |
| Timeline |
| Ancorathelen Small Mid |
| Eagle Growth Income |
Ancorathelen Small and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ancorathelen Small and Eagle Growth
The main advantage of trading using opposite Ancorathelen Small and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ancorathelen Small position performs unexpectedly, Eagle Growth 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 Growth will offset losses from the drop in Eagle Growth's long position.| Ancorathelen Small vs. Aqr Large Cap | Ancorathelen Small vs. John Hancock Investment | Ancorathelen Small vs. Dodge Cox Stock | Ancorathelen Small vs. M Large Cap |
| Eagle Growth vs. Artisan Small Cap | Eagle Growth vs. Legg Mason Partners | Eagle Growth vs. Champlain Mid Cap | Eagle Growth vs. Chase Growth Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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