Correlation Between Eagle Point and XAI Octagon
Can any of the company-specific risk be diversified away by investing in both Eagle Point and XAI Octagon 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 XAI Octagon 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 XAI Octagon Floating, you can compare the effects of market volatilities on Eagle Point and XAI Octagon 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 XAI Octagon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and XAI Octagon.
Diversification Opportunities for Eagle Point and XAI Octagon
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eagle and XAI is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and XAI Octagon Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAI Octagon Floating 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 XAI Octagon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XAI Octagon Floating has no effect on the direction of Eagle Point i.e., Eagle Point and XAI Octagon go up and down completely randomly.
Pair Corralation between Eagle Point and XAI Octagon
Considering the 90-day investment horizon Eagle Point Credit is expected to generate 1.12 times more return on investment than XAI Octagon. However, Eagle Point is 1.12 times more volatile than XAI Octagon Floating. It trades about 0.15 of its potential returns per unit of risk. XAI Octagon Floating is currently generating about -0.09 per unit of risk. If you would invest 865.00 in Eagle Point Credit on October 21, 2024 and sell it today you would earn a total of 20.00 from holding Eagle Point Credit or generate 2.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. XAI Octagon Floating
Performance |
| Timeline |
| Eagle Point Credit |
| XAI Octagon Floating |
Eagle Point and XAI Octagon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and XAI Octagon
The main advantage of trading using opposite Eagle Point and XAI Octagon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, XAI Octagon 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 XAI Octagon will offset losses from the drop in XAI Octagon'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 |
| XAI Octagon vs. Oxford Lane Capital | XAI Octagon vs. Capital Southwest | XAI Octagon vs. Cornerstone Strategic Return | XAI Octagon vs. Cornerstone Strategic Value |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |