Correlation Between Eic Value and 361 Global
Can any of the company-specific risk be diversified away by investing in both Eic Value and 361 Global 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 Eic Value and 361 Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eic Value Fund and 361 Global Longshort, you can compare the effects of market volatilities on Eic Value and 361 Global 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 Eic Value with a short position of 361 Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and 361 Global.
Diversification Opportunities for Eic Value and 361 Global
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eic and 361 is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and 361 Global Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 361 Global Longshort and Eic Value 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 Eic Value Fund are associated (or correlated) with 361 Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 361 Global Longshort has no effect on the direction of Eic Value i.e., Eic Value and 361 Global go up and down completely randomly.
Pair Corralation between Eic Value and 361 Global
Assuming the 90 days horizon Eic Value Fund is expected to generate 1.4 times more return on investment than 361 Global. However, Eic Value is 1.4 times more volatile than 361 Global Longshort. It trades about 0.12 of its potential returns per unit of risk. 361 Global Longshort is currently generating about 0.1 per unit of risk. If you would invest 1,582 in Eic Value Fund on September 3, 2024 and sell it today you would earn a total of 326.00 from holding Eic Value Fund or generate 20.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eic Value Fund vs. 361 Global Longshort
Performance |
| Timeline |
| Eic Value Fund |
| 361 Global Longshort |
Eic Value and 361 Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eic Value and 361 Global
The main advantage of trading using opposite Eic Value and 361 Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eic Value position performs unexpectedly, 361 Global 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 361 Global will offset losses from the drop in 361 Global's long position.| Eic Value vs. Tax Managed Mid Small | Eic Value vs. Legg Mason Bw | Eic Value vs. Jhancock Diversified Macro | Eic Value vs. Davenport Small Cap |
| 361 Global vs. Volumetric Fund Volumetric | 361 Global vs. Fa 529 Aggressive | 361 Global vs. Bbh Intermediate Municipal | 361 Global vs. Qs Large Cap |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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