Correlation Between Eagle Point and Guggenheim Strategic
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Guggenheim Strategic 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 Point and Guggenheim Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and Guggenheim Strategic Opportunities, you can compare the effects of market volatilities on Eagle Point and Guggenheim Strategic 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 Point with a short position of Guggenheim Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Guggenheim Strategic.
Diversification Opportunities for Eagle Point and Guggenheim Strategic
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and Guggenheim is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Guggenheim Strategic Opportuni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Strategic and Eagle Point 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 Point Credit are associated (or correlated) with Guggenheim Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Strategic has no effect on the direction of Eagle Point i.e., Eagle Point and Guggenheim Strategic go up and down completely randomly.
Pair Corralation between Eagle Point and Guggenheim Strategic
Considering the 90-day investment horizon Eagle Point is expected to generate 13.79 times less return on investment than Guggenheim Strategic. But when comparing it to its historical volatility, Eagle Point Credit is 1.06 times less risky than Guggenheim Strategic. It trades about 0.0 of its potential returns per unit of risk. Guggenheim Strategic Opportunities is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,183 in Guggenheim Strategic Opportunities on January 15, 2025 and sell it today you would earn a total of 286.00 from holding Guggenheim Strategic Opportunities or generate 24.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. Guggenheim Strategic Opportuni
Performance |
| Timeline |
| Eagle Point Credit |
| Guggenheim Strategic |
Eagle Point and Guggenheim Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Guggenheim Strategic
The main advantage of trading using opposite Eagle Point and Guggenheim Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Guggenheim Strategic 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 Guggenheim Strategic will offset losses from the drop in Guggenheim Strategic's long position.| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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