Correlation Between Eagle Mid and Eagle Capital
Can any of the company-specific risk be diversified away by investing in both Eagle Mid and Eagle Capital 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 Mid and Eagle Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mid Cap and Eagle Capital Appreciation, you can compare the effects of market volatilities on Eagle Mid and Eagle Capital 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 Mid with a short position of Eagle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mid and Eagle Capital.
Diversification Opportunities for Eagle Mid and Eagle Capital
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Eagle is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap and Eagle Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Capital Apprec and Eagle Mid 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 Mid Cap are associated (or correlated) with Eagle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Capital Apprec has no effect on the direction of Eagle Mid i.e., Eagle Mid and Eagle Capital go up and down completely randomly.
Pair Corralation between Eagle Mid and Eagle Capital
Assuming the 90 days horizon Eagle Mid Cap is expected to generate 0.65 times more return on investment than Eagle Capital. However, Eagle Mid Cap is 1.53 times less risky than Eagle Capital. It trades about 0.03 of its potential returns per unit of risk. Eagle Capital Appreciation is currently generating about 0.02 per unit of risk. If you would invest 5,110 in Eagle Mid Cap on August 24, 2024 and sell it today you would earn a total of 803.00 from holding Eagle Mid Cap or generate 15.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Mid Cap vs. Eagle Capital Appreciation
Performance |
| Timeline |
| Eagle Mid Cap |
| Eagle Capital Apprec |
Eagle Mid and Eagle Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mid and Eagle Capital
The main advantage of trading using opposite Eagle Mid and Eagle Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid position performs unexpectedly, Eagle Capital 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 Capital will offset losses from the drop in Eagle Capital's long position.| Eagle Mid vs. Franklin Gold Precious | Eagle Mid vs. Ocm Mutual Fund | Eagle Mid vs. Global Gold Fund | Eagle Mid vs. Gabelli Gold Fund |
| Eagle Capital vs. HUMANA INC | Eagle Capital vs. Aquagold International | Eagle Capital vs. Barloworld Ltd ADR | Eagle Capital vs. Morningstar Unconstrained Allocation |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |