Correlation Between Eagle Mid and Growth Strategy
Can any of the company-specific risk be diversified away by investing in both Eagle Mid and Growth Strategy 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 Growth Strategy 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 Growth Strategy Fund, you can compare the effects of market volatilities on Eagle Mid and Growth Strategy 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 Growth Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mid and Growth Strategy.
Diversification Opportunities for Eagle Mid and Growth Strategy
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Growth is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap and Growth Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Strategy 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 Growth Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Strategy has no effect on the direction of Eagle Mid i.e., Eagle Mid and Growth Strategy go up and down completely randomly.
Pair Corralation between Eagle Mid and Growth Strategy
Assuming the 90 days horizon Eagle Mid is expected to generate 5.54 times less return on investment than Growth Strategy. But when comparing it to its historical volatility, Eagle Mid Cap is 2.63 times less risky than Growth Strategy. It trades about 0.04 of its potential returns per unit of risk. Growth Strategy Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,009 in Growth Strategy Fund on September 12, 2024 and sell it today you would earn a total of 195.00 from holding Growth Strategy Fund or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.14% |
| Values | Daily Returns |
Eagle Mid Cap vs. Growth Strategy Fund
Performance |
| Timeline |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Growth Strategy |
Eagle Mid and Growth Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mid and Growth Strategy
The main advantage of trading using opposite Eagle Mid and Growth Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid position performs unexpectedly, Growth Strategy 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 Growth Strategy will offset losses from the drop in Growth Strategy's long position.| Eagle Mid vs. Blackrock Sm Cap | Eagle Mid vs. Small Cap Stock | Eagle Mid vs. Oppenheimer International Diversified | Eagle Mid vs. Davenport Small Cap |
| Growth Strategy vs. Smallcap Growth Fund | Growth Strategy vs. T Rowe Price | Growth Strategy vs. L Abbett Growth | Growth Strategy vs. Rational Defensive Growth |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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