Correlation Between General Money and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both General Money and Eagle Mid 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 General Money and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Money Market and Eagle Mid Cap, you can compare the effects of market volatilities on General Money and Eagle Mid 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 General Money with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Money and Eagle Mid.
Diversification Opportunities for General Money and Eagle Mid
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between General and Eagle is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding General Money Market and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and General Money 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 General Money Market are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of General Money i.e., General Money and Eagle Mid go up and down completely randomly.
Pair Corralation between General Money and Eagle Mid
If you would invest 9,092 in Eagle Mid Cap on September 13, 2024 and sell it today you would earn a total of 48.00 from holding Eagle Mid Cap or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Money Market vs. Eagle Mid Cap
Performance |
| Timeline |
| General Money Market |
| Eagle Mid Cap |
General Money and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Money and Eagle Mid
The main advantage of trading using opposite General Money and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Money position performs unexpectedly, Eagle Mid 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 Mid will offset losses from the drop in Eagle Mid's long position.| General Money vs. Putnam Money Market | General Money vs. Cref Money Market | General Money vs. Ab Government Exchange | General Money vs. Money Market Obligations |
| Eagle Mid vs. Mfs Mid Cap | Eagle Mid vs. Janus Triton Fund | Eagle Mid vs. Europacific Growth Fund | Eagle Mid vs. Mfs International Value |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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