Correlation Between Eagle Capital and Berwyn Cornerstone
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Berwyn Cornerstone 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 Berwyn Cornerstone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Capital Appreciation and Berwyn Nerstone Fund, you can compare the effects of market volatilities on Eagle Capital and Berwyn Cornerstone 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 Berwyn Cornerstone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Berwyn Cornerstone.
Diversification Opportunities for Eagle Capital and Berwyn Cornerstone
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and Berwyn is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Appreciation and Berwyn Nerstone Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berwyn Cornerstone 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 Appreciation are associated (or correlated) with Berwyn Cornerstone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berwyn Cornerstone has no effect on the direction of Eagle Capital i.e., Eagle Capital and Berwyn Cornerstone go up and down completely randomly.
Pair Corralation between Eagle Capital and Berwyn Cornerstone
Assuming the 90 days horizon Eagle Capital Appreciation is expected to generate 1.33 times more return on investment than Berwyn Cornerstone. However, Eagle Capital is 1.33 times more volatile than Berwyn Nerstone Fund. It trades about 0.06 of its potential returns per unit of risk. Berwyn Nerstone Fund is currently generating about 0.02 per unit of risk. If you would invest 2,360 in Eagle Capital Appreciation on November 9, 2024 and sell it today you would earn a total of 509.00 from holding Eagle Capital Appreciation or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.76% |
| Values | Daily Returns |
Eagle Capital Appreciation vs. Berwyn Nerstone Fund
Performance |
| Timeline |
| Eagle Capital Apprec |
| Berwyn Cornerstone |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Eagle Capital and Berwyn Cornerstone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Berwyn Cornerstone
The main advantage of trading using opposite Eagle Capital and Berwyn Cornerstone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Berwyn Cornerstone 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 Berwyn Cornerstone will offset losses from the drop in Berwyn Cornerstone's long position.| Eagle Capital vs. Western Asset E | Eagle Capital vs. Blrc Sgy Mnp | Eagle Capital vs. T Rowe Price | Eagle Capital vs. Touchstone Funds Group |
| Berwyn Cornerstone vs. Astor Star Fund | Berwyn Cornerstone vs. T Rowe Price | Berwyn Cornerstone vs. T Rowe Price | Berwyn Cornerstone vs. T Rowe Price |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |