Correlation Between Eagle Capital and Virtus Dividend
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Virtus Dividend 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 Capital and Virtus Dividend into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Capital Growth and Virtus Dividend Interest, you can compare the effects of market volatilities on Eagle Capital and Virtus Dividend 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 Capital with a short position of Virtus Dividend. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Virtus Dividend.
Diversification Opportunities for Eagle Capital and Virtus Dividend
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Virtus is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth and Virtus Dividend Interest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Dividend Interest and Eagle Capital 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 Capital Growth are associated (or correlated) with Virtus Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Dividend Interest has no effect on the direction of Eagle Capital i.e., Eagle Capital and Virtus Dividend go up and down completely randomly.
Pair Corralation between Eagle Capital and Virtus Dividend
Considering the 90-day investment horizon Eagle Capital Growth is expected to generate 2.56 times more return on investment than Virtus Dividend. However, Eagle Capital is 2.56 times more volatile than Virtus Dividend Interest. It trades about 0.07 of its potential returns per unit of risk. Virtus Dividend Interest is currently generating about 0.18 per unit of risk. If you would invest 982.00 in Eagle Capital Growth on August 29, 2024 and sell it today you would earn a total of 23.00 from holding Eagle Capital Growth or generate 2.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Capital Growth vs. Virtus Dividend Interest
Performance |
| Timeline |
| Eagle Capital Growth |
| Virtus Dividend Interest |
Eagle Capital and Virtus Dividend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Virtus Dividend
The main advantage of trading using opposite Eagle Capital and Virtus Dividend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Virtus Dividend 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 Virtus Dividend will offset losses from the drop in Virtus Dividend's long position.| Eagle Capital vs. Eaton Vance New | Eagle Capital vs. Pimco New York | Eagle Capital vs. Nuveen Amt Free Municipal | Eagle Capital vs. Western Asset Municipal |
| Virtus Dividend vs. Eaton Vance Risk | Virtus Dividend vs. Blackrock Muniholdings Closed | Virtus Dividend vs. DTF Tax Free | Virtus Dividend vs. Eaton Vance Floating |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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