Correlation Between Blackrock Floating and Eagle Point
Can any of the company-specific risk be diversified away by investing in both Blackrock Floating and Eagle Point 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 Blackrock Floating and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Floating Rate and Eagle Point Income, you can compare the effects of market volatilities on Blackrock Floating and Eagle Point 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 Blackrock Floating with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Floating and Eagle Point.
Diversification Opportunities for Blackrock Floating and Eagle Point
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Eagle is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Floating Rate and Eagle Point Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Income and Blackrock Floating 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 Blackrock Floating Rate are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Income has no effect on the direction of Blackrock Floating i.e., Blackrock Floating and Eagle Point go up and down completely randomly.
Pair Corralation between Blackrock Floating and Eagle Point
Considering the 90-day investment horizon Blackrock Floating Rate is expected to under-perform the Eagle Point. In addition to that, Blackrock Floating is 2.5 times more volatile than Eagle Point Income. It trades about -0.24 of its total potential returns per unit of risk. Eagle Point Income is currently generating about 0.21 per unit of volatility. If you would invest 2,373 in Eagle Point Income on November 3, 2024 and sell it today you would earn a total of 29.00 from holding Eagle Point Income or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Blackrock Floating Rate vs. Eagle Point Income
Performance |
| Timeline |
| Blackrock Floating Rate |
| Eagle Point Income |
Blackrock Floating and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Floating and Eagle Point
The main advantage of trading using opposite Blackrock Floating and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Floating position performs unexpectedly, Eagle Point 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 Eagle Point will offset losses from the drop in Eagle Point's long position.| Blackrock Floating vs. BlackRock Floating Rate | Blackrock Floating vs. Eaton Vance Floating | Blackrock Floating vs. Eaton Vance Senior | Blackrock Floating vs. Nuveen Floating Rate |
| Eagle Point vs. Eagle Point Credit | Eagle Point vs. Eagle Point Credit | Eagle Point vs. Oxford Lane Capital | Eagle Point vs. OFS Credit |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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