Correlation Between Eagle Capital and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Balanced Fund 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 Balanced Fund 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 Balanced Fund Investor, you can compare the effects of market volatilities on Eagle Capital and Balanced Fund 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 Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Balanced Fund.
Diversification Opportunities for Eagle Capital and Balanced Fund
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Balanced is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Appreciation and Balanced Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Investor 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 Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Investor has no effect on the direction of Eagle Capital i.e., Eagle Capital and Balanced Fund go up and down completely randomly.
Pair Corralation between Eagle Capital and Balanced Fund
Assuming the 90 days horizon Eagle Capital Appreciation is expected to generate 2.0 times more return on investment than Balanced Fund. However, Eagle Capital is 2.0 times more volatile than Balanced Fund Investor. It trades about 0.17 of its potential returns per unit of risk. Balanced Fund Investor is currently generating about 0.11 per unit of risk. If you would invest 3,375 in Eagle Capital Appreciation on September 12, 2024 and sell it today you would earn a total of 972.00 from holding Eagle Capital Appreciation or generate 28.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.55% |
| Values | Daily Returns |
Eagle Capital Appreciation vs. Balanced Fund Investor
Performance |
| Timeline |
| Eagle Capital Apprec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Balanced Fund Investor |
Eagle Capital and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Balanced Fund
The main advantage of trading using opposite Eagle Capital and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund's long position.| Eagle Capital vs. Franklin Federal Limited Term | Eagle Capital vs. Alpine Ultra Short | Eagle Capital vs. Rbc Short Duration | Eagle Capital vs. Easterly Snow Longshort |
| Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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