Correlation Between Eagle Point and Triplepoint Venture
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Triplepoint Venture 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 Triplepoint Venture 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 Triplepoint Venture Growth, you can compare the effects of market volatilities on Eagle Point and Triplepoint Venture 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 Triplepoint Venture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Triplepoint Venture.
Diversification Opportunities for Eagle Point and Triplepoint Venture
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eagle and Triplepoint is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Triplepoint Venture Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triplepoint Venture 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 Triplepoint Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triplepoint Venture has no effect on the direction of Eagle Point i.e., Eagle Point and Triplepoint Venture go up and down completely randomly.
Pair Corralation between Eagle Point and Triplepoint Venture
Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the Triplepoint Venture. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Point Credit is 2.92 times less risky than Triplepoint Venture. The stock trades about -0.16 of its potential returns per unit of risk. The Triplepoint Venture Growth is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 680.00 in Triplepoint Venture Growth on August 28, 2024 and sell it today you would earn a total of 145.00 from holding Triplepoint Venture Growth or generate 21.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. Triplepoint Venture Growth
Performance |
| Timeline |
| Eagle Point Credit |
| Triplepoint Venture |
Eagle Point and Triplepoint Venture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Triplepoint Venture
The main advantage of trading using opposite Eagle Point and Triplepoint Venture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Triplepoint Venture 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 Triplepoint Venture will offset losses from the drop in Triplepoint Venture'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 |
| Triplepoint Venture vs. PowerUp Acquisition Corp | Triplepoint Venture vs. Aurora Innovation | Triplepoint Venture vs. HUMANA INC | Triplepoint Venture vs. Aquagold International |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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