Correlation Between Eagle Point and Blackrock Floating
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Blackrock Floating 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 Blackrock Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Income and Blackrock Floating Rate, you can compare the effects of market volatilities on Eagle Point and Blackrock Floating 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 Blackrock Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Blackrock Floating.
Diversification Opportunities for Eagle Point and Blackrock Floating
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eagle and Blackrock is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Income and Blackrock Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Floating Rate 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 Income are associated (or correlated) with Blackrock Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Floating Rate has no effect on the direction of Eagle Point i.e., Eagle Point and Blackrock Floating go up and down completely randomly.
Pair Corralation between Eagle Point and Blackrock Floating
Given the investment horizon of 90 days Eagle Point Income is expected to generate 0.59 times more return on investment than Blackrock Floating. However, Eagle Point Income is 1.71 times less risky than Blackrock Floating. It trades about 0.14 of its potential returns per unit of risk. Blackrock Floating Rate is currently generating about -0.61 per unit of risk. If you would invest 2,378 in Eagle Point Income on October 22, 2024 and sell it today you would earn a total of 25.00 from holding Eagle Point Income or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Eagle Point Income vs. Blackrock Floating Rate
Performance |
| Timeline |
| Eagle Point Income |
| Blackrock Floating Rate |
Eagle Point and Blackrock Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Blackrock Floating
The main advantage of trading using opposite Eagle Point and Blackrock Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Blackrock Floating 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 Blackrock Floating will offset losses from the drop in Blackrock Floating's long position.| Eagle Point vs. Eagle Point Credit | Eagle Point vs. Eagle Point Credit | Eagle Point vs. Oxford Lane Capital | Eagle Point vs. OFS Credit |
| Blackrock Floating vs. BlackRock Floating Rate | Blackrock Floating vs. Eaton Vance Floating | Blackrock Floating vs. Eaton Vance Senior | Blackrock Floating vs. Nuveen Floating Rate |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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