Correlation Between Eagle Point and Putnam High
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Putnam High 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 Putnam High 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 Putnam High Income, you can compare the effects of market volatilities on Eagle Point and Putnam High 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 Putnam High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Putnam High.
Diversification Opportunities for Eagle Point and Putnam High
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eagle and Putnam is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Putnam High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putnam High Income 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 Putnam High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putnam High Income has no effect on the direction of Eagle Point i.e., Eagle Point and Putnam High go up and down completely randomly.
Pair Corralation between Eagle Point and Putnam High
Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the Putnam High. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Point Credit is 1.4 times less risky than Putnam High. The stock trades about -0.23 of its potential returns per unit of risk. The Putnam High Income is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 646.00 in Putnam High Income on November 2, 2024 and sell it today you would earn a total of 22.00 from holding Putnam High Income or generate 3.41% 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. Putnam High Income
Performance |
| Timeline |
| Eagle Point Credit |
| Putnam High Income |
Eagle Point and Putnam High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Putnam High
The main advantage of trading using opposite Eagle Point and Putnam High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Putnam High 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 Putnam High will offset losses from the drop in Putnam High'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 |
| Putnam High vs. RiverNorthDoubleLine Strategic Opportunity | Putnam High vs. Cornerstone Strategic Return | Putnam High vs. Oxford Lane Capital | Putnam High vs. Horizon Technology Finance |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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