Correlation Between Eagle Mid and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Eagle Mid and Eagle Growth 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 Growth 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 Growth Income, you can compare the effects of market volatilities on Eagle Mid and Eagle Growth 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 Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mid and Eagle Growth.
Diversification Opportunities for Eagle Mid and Eagle Growth
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eagle and Eagle is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income 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 Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Eagle Mid i.e., Eagle Mid and Eagle Growth go up and down completely randomly.
Pair Corralation between Eagle Mid and Eagle Growth
Assuming the 90 days horizon Eagle Mid Cap is expected to generate 0.89 times more return on investment than Eagle Growth. However, Eagle Mid Cap is 1.12 times less risky than Eagle Growth. It trades about -0.11 of its potential returns per unit of risk. Eagle Growth Income is currently generating about -0.17 per unit of risk. If you would invest 8,857 in Eagle Mid Cap on October 20, 2024 and sell it today you would lose (609.00) from holding Eagle Mid Cap or give up 6.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Mid Cap vs. Eagle Growth Income
Performance |
| Timeline |
| Eagle Mid Cap |
| Eagle Growth Income |
Eagle Mid and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Mid and Eagle Growth
The main advantage of trading using opposite Eagle Mid and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid position performs unexpectedly, Eagle Growth 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 Growth will offset losses from the drop in Eagle Growth's long position.| Eagle Mid vs. Mfs Mid Cap | Eagle Mid vs. Janus Triton Fund | Eagle Mid vs. Europacific Growth Fund | Eagle Mid vs. Mfs International Value |
| Eagle Growth vs. Siit High Yield | Eagle Growth vs. Ab Bond Inflation | Eagle Growth vs. Doubleline Total Return | Eagle Growth vs. Versatile Bond Portfolio |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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