Correlation Between Eagle Capital and Pimco New
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Pimco New 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 Pimco New 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 Pimco New York, you can compare the effects of market volatilities on Eagle Capital and Pimco New 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 Pimco New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Pimco New.
Diversification Opportunities for Eagle Capital and Pimco New
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eagle and Pimco is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth and Pimco New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco New York 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 Pimco New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco New York has no effect on the direction of Eagle Capital i.e., Eagle Capital and Pimco New go up and down completely randomly.
Pair Corralation between Eagle Capital and Pimco New
Considering the 90-day investment horizon Eagle Capital Growth is expected to generate 2.4 times more return on investment than Pimco New. However, Eagle Capital is 2.4 times more volatile than Pimco New York. It trades about 0.05 of its potential returns per unit of risk. Pimco New York is currently generating about 0.03 per unit of risk. If you would invest 831.00 in Eagle Capital Growth on August 31, 2024 and sell it today you would earn a total of 209.00 from holding Eagle Capital Growth or generate 25.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
Eagle Capital Growth vs. Pimco New York
Performance |
| Timeline |
| Eagle Capital Growth |
| Pimco New York |
Eagle Capital and Pimco New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Pimco New
The main advantage of trading using opposite Eagle Capital and Pimco New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Pimco New 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 Pimco New will offset losses from the drop in Pimco New'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 |
| Pimco New vs. Pimco New York | Pimco New vs. Pimco New York | Pimco New vs. Pimco California Municipal | Pimco New vs. Pimco Municipal Income |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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