Correlation Between CVF Technologies and Eagle Point
Can any of the company-specific risk be diversified away by investing in both CVF Technologies and Eagle Point 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 CVF Technologies and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVF Technologies and Eagle Point Income, you can compare the effects of market volatilities on CVF Technologies and Eagle Point 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 CVF Technologies with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVF Technologies and Eagle Point.
Diversification Opportunities for CVF Technologies and Eagle Point
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVF and Eagle is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CVF Technologies and Eagle Point Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Income and CVF Technologies 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 CVF Technologies are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Income has no effect on the direction of CVF Technologies i.e., CVF Technologies and Eagle Point go up and down completely randomly.
Pair Corralation between CVF Technologies and Eagle Point
If you would invest 2,363 in Eagle Point Income on August 24, 2024 and sell it today you would earn a total of 23.00 from holding Eagle Point Income or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
CVF Technologies vs. Eagle Point Income
Performance |
| Timeline |
| CVF Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eagle Point Income |
CVF Technologies and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVF Technologies and Eagle Point
The main advantage of trading using opposite CVF Technologies and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVF Technologies position performs unexpectedly, Eagle Point 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 Point will offset losses from the drop in Eagle Point's long position.| CVF Technologies vs. Guggenheim Strategic Opportunities | CVF Technologies vs. Pimco Dynamic Income | CVF Technologies vs. Rivernorth Opportunities | CVF Technologies vs. Cornerstone Strategic Value |
| Eagle Point vs. Eagle Point Credit | Eagle Point vs. Eagle Point Credit | Eagle Point vs. Oxford Lane Capital | Eagle Point vs. OFS Credit |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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