Correlation Between Eagle Point and Priorityome Fund
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Priorityome Fund 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 Priorityome Fund 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 Priorityome Fund, you can compare the effects of market volatilities on Eagle Point and Priorityome Fund 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 Priorityome Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Priorityome Fund.
Diversification Opportunities for Eagle Point and Priorityome Fund
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Priorityome is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Priorityome Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Priorityome Fund 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 Priorityome Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Priorityome Fund has no effect on the direction of Eagle Point i.e., Eagle Point and Priorityome Fund go up and down completely randomly.
Pair Corralation between Eagle Point and Priorityome Fund
Given the investment horizon of 90 days Eagle Point Credit is expected to generate 0.55 times more return on investment than Priorityome Fund. However, Eagle Point Credit is 1.82 times less risky than Priorityome Fund. It trades about 0.17 of its potential returns per unit of risk. Priorityome Fund is currently generating about -0.01 per unit of risk. If you would invest 2,302 in Eagle Point Credit on September 1, 2024 and sell it today you would earn a total of 54.00 from holding Eagle Point Credit or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. Priorityome Fund
Performance |
| Timeline |
| Eagle Point Credit |
| Priorityome Fund |
Eagle Point and Priorityome Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Priorityome Fund
The main advantage of trading using opposite Eagle Point and Priorityome Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Priorityome Fund 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 Priorityome Fund will offset losses from the drop in Priorityome Fund's long position.| Eagle Point vs. Eagle Point Income | Eagle Point vs. Oxford Lane Capital | Eagle Point vs. Eagle Point Credit | Eagle Point vs. Eagle Point Credit |
| Priorityome Fund vs. Priorityome Fund | Priorityome Fund vs. Priorityome Fund | Priorityome Fund vs. Priorityome Fund | Priorityome Fund vs. Eagle Point Credit |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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