Correlation Between Eagle Point and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs BDC, you can compare the effects of market volatilities on Eagle Point and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Goldman Sachs.
Diversification Opportunities for Eagle Point and Goldman Sachs
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eagle and Goldman is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Income and Goldman Sachs BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs BDC 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs BDC has no effect on the direction of Eagle Point i.e., Eagle Point and Goldman Sachs go up and down completely randomly.
Pair Corralation between Eagle Point and Goldman Sachs
Given the investment horizon of 90 days Eagle Point Income is expected to generate 0.24 times more return on investment than Goldman Sachs. However, Eagle Point Income is 4.21 times less risky than Goldman Sachs. It trades about 0.17 of its potential returns per unit of risk. Goldman Sachs BDC is currently generating about -0.07 per unit of risk. If you would invest 2,268 in Eagle Point Income on August 28, 2024 and sell it today you would earn a total of 113.00 from holding Eagle Point Income or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Income vs. Goldman Sachs BDC
Performance |
| Timeline |
| Eagle Point Income |
| Goldman Sachs BDC |
Eagle Point and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Goldman Sachs
The main advantage of trading using opposite Eagle Point and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' 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 |
| Goldman Sachs vs. Carlyle Secured Lending | Goldman Sachs vs. Sixth Street Specialty | Goldman Sachs vs. Golub Capital BDC | Goldman Sachs vs. Fidus Investment Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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