Correlation Between Eagle Point and BlackRock TCP
Can any of the company-specific risk be diversified away by investing in both Eagle Point and BlackRock TCP 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 BlackRock TCP 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 BlackRock TCP Capital, you can compare the effects of market volatilities on Eagle Point and BlackRock TCP 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 BlackRock TCP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and BlackRock TCP.
Diversification Opportunities for Eagle Point and BlackRock TCP
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and BlackRock is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and BlackRock TCP Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlackRock TCP Capital 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 BlackRock TCP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlackRock TCP Capital has no effect on the direction of Eagle Point i.e., Eagle Point and BlackRock TCP go up and down completely randomly.
Pair Corralation between Eagle Point and BlackRock TCP
Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the BlackRock TCP. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Point Credit is 2.79 times less risky than BlackRock TCP. The stock trades about -0.31 of its potential returns per unit of risk. The BlackRock TCP Capital is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 819.00 in BlackRock TCP Capital on August 24, 2024 and sell it today you would earn a total of 80.00 from holding BlackRock TCP Capital or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. BlackRock TCP Capital
Performance |
| Timeline |
| Eagle Point Credit |
| BlackRock TCP Capital |
Eagle Point and BlackRock TCP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and BlackRock TCP
The main advantage of trading using opposite Eagle Point and BlackRock TCP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, BlackRock TCP 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 BlackRock TCP will offset losses from the drop in BlackRock TCP'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 |
| BlackRock TCP vs. Triplepoint Venture Growth | BlackRock TCP vs. Sixth Street Specialty | BlackRock TCP vs. Golub Capital BDC | BlackRock TCP vs. New Mountain 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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