Correlation Between Eagle Mlp and Nasdaq-100(r)

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Can any of the company-specific risk be diversified away by investing in both Eagle Mlp and Nasdaq-100(r) 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 Nasdaq-100(r) 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 Nasdaq 100 2x Strategy, you can compare the effects of market volatilities on Eagle Mlp and Nasdaq-100(r) 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 Nasdaq-100(r). Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Nasdaq-100(r).

Diversification Opportunities for Eagle Mlp and Nasdaq-100(r)

EagleNasdaq-100(r)Diversified AwayEagleNasdaq-100(r)Diversified Away100%
0.37
  Correlation Coefficient

Weak diversification

The 3 months correlation between Eagle and Nasdaq-100(r) is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Nasdaq 100 2x Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq 100 2x 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 Nasdaq-100(r). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq 100 2x has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Nasdaq-100(r) go up and down completely randomly.

Pair Corralation between Eagle Mlp and Nasdaq-100(r)

Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 0.55 times more return on investment than Nasdaq-100(r). However, Eagle Mlp Strategy is 1.82 times less risky than Nasdaq-100(r). It trades about 0.18 of its potential returns per unit of risk. Nasdaq 100 2x Strategy is currently generating about -0.02 per unit of risk. If you would invest  1,054  in Eagle Mlp Strategy on October 30, 2024 and sell it today you would earn a total of  51.00  from holding Eagle Mlp Strategy or generate 4.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Eagle Mlp Strategy  vs.  Nasdaq 100 2x Strategy

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -5051015
JavaScript chart by amCharts 3.21.15EGLNX RYVYX
       Timeline  
Eagle Mlp Strategy 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mlp Strategy are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mlp showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1010.51111.5
Nasdaq 100 2x 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Nasdaq 100 2x Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Nasdaq-100(r) is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan540560580600620

Eagle Mlp and Nasdaq-100(r) Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.94-2.95-1.96-0.970.01.012.083.144.215.27 0.050.100.150.20
JavaScript chart by amCharts 3.21.15EGLNX RYVYX
       Returns  

Pair Trading with Eagle Mlp and Nasdaq-100(r)

The main advantage of trading using opposite Eagle Mlp and Nasdaq-100(r) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mlp position performs unexpectedly, Nasdaq-100(r) 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 Nasdaq-100(r) will offset losses from the drop in Nasdaq-100(r)'s long position.
The idea behind Eagle Mlp Strategy and Nasdaq 100 2x Strategy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

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