Correlation Between Eagle Mlp and Hartford Municipal
Can any of the company-specific risk be diversified away by investing in both Eagle Mlp and Hartford Municipal 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 Mlp and Hartford Municipal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mlp Strategy and The Hartford Municipal, you can compare the effects of market volatilities on Eagle Mlp and Hartford Municipal 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 Mlp with a short position of Hartford Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Hartford Municipal.
Diversification Opportunities for Eagle Mlp and Hartford Municipal
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and Hartford is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and The Hartford Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Municipal and Eagle Mlp 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 Mlp Strategy are associated (or correlated) with Hartford Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Municipal has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Hartford Municipal go up and down completely randomly.
Pair Corralation between Eagle Mlp and Hartford Municipal
Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 4.38 times more return on investment than Hartford Municipal. However, Eagle Mlp is 4.38 times more volatile than The Hartford Municipal. It trades about 0.59 of its potential returns per unit of risk. The Hartford Municipal is currently generating about 0.14 per unit of risk. If you would invest 976.00 in Eagle Mlp Strategy on August 29, 2024 and sell it today you would earn a total of 144.00 from holding Eagle Mlp Strategy or generate 14.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Mlp Strategy vs. The Hartford Municipal
Performance |
| Timeline |
| Eagle Mlp Strategy |
| The Hartford Municipal |
Eagle Mlp and Hartford Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mlp and Hartford Municipal
The main advantage of trading using opposite Eagle Mlp and Hartford Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mlp position performs unexpectedly, Hartford Municipal 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 Hartford Municipal will offset losses from the drop in Hartford Municipal's long position.| Eagle Mlp vs. Calamos Strategic Total | Eagle Mlp vs. Vaughan Nelson Select | Eagle Mlp vs. Fidelity Contrafund | Eagle Mlp vs. Lord Abbett Affiliated |
| Hartford Municipal vs. The Hartford Growth | Hartford Municipal vs. The Hartford Growth | Hartford Municipal vs. The Hartford Growth | Hartford Municipal vs. The Hartford Growth |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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