Correlation Between Bbh Intermediate and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate 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 Bbh Intermediate and Eagle Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and Eagle Growth Income, you can compare the effects of market volatilities on Bbh Intermediate 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 Bbh Intermediate with a short position of Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and Eagle Growth.
Diversification Opportunities for Bbh Intermediate and Eagle Growth
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bbh and Eagle is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal 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 Bbh Intermediate 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 Bbh Intermediate Municipal 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 Bbh Intermediate i.e., Bbh Intermediate and Eagle Growth go up and down completely randomly.
Pair Corralation between Bbh Intermediate and Eagle Growth
Assuming the 90 days horizon Bbh Intermediate is expected to generate 3.47 times less return on investment than Eagle Growth. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 3.98 times less risky than Eagle Growth. It trades about 0.09 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,866 in Eagle Growth Income on August 24, 2024 and sell it today you would earn a total of 572.00 from holding Eagle Growth Income or generate 30.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. Eagle Growth Income
Performance |
| Timeline |
| Bbh Intermediate Mun |
| Eagle Growth Income |
Bbh Intermediate and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and Eagle Growth
The main advantage of trading using opposite Bbh Intermediate and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate 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.| Bbh Intermediate vs. Enhanced Large Pany | Bbh Intermediate vs. Nuveen Winslow Large Cap | Bbh Intermediate vs. T Rowe Price | Bbh Intermediate vs. Goldman Sachs Large |
| Eagle Growth vs. Bbh Intermediate Municipal | Eagle Growth vs. Dws Government Money | Eagle Growth vs. Counterpoint Tactical Municipal | Eagle Growth vs. The National Tax Free |
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 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.
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