Correlation Between Eagle Capital and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Eagle Capital 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 Capital 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 Capital Appreciation and Eagle Growth Income, you can compare the effects of market volatilities on Eagle Capital 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 Capital with a short position of Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Eagle Growth.
Diversification Opportunities for Eagle Capital and Eagle Growth
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Eagle is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Appreciation 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 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 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 Capital i.e., Eagle Capital and Eagle Growth go up and down completely randomly.
Pair Corralation between Eagle Capital and Eagle Growth
Assuming the 90 days horizon Eagle Capital Appreciation is expected to generate 1.46 times more return on investment than Eagle Growth. However, Eagle Capital is 1.46 times more volatile than Eagle Growth Income. It trades about 0.15 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.21 per unit of risk. If you would invest 5,849 in Eagle Capital Appreciation on August 28, 2024 and sell it today you would earn a total of 220.00 from holding Eagle Capital Appreciation or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Capital Appreciation vs. Eagle Growth Income
Performance |
| Timeline |
| Eagle Capital Apprec |
| Eagle Growth Income |
Eagle Capital and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Eagle Growth
The main advantage of trading using opposite Eagle Capital and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital 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 Capital vs. Chartwell Short Duration | Eagle Capital vs. Carillon Chartwell Short | Eagle Capital vs. Chartwell Short Duration | Eagle Capital vs. Carillon Chartwell Short |
| Eagle Growth vs. Massmutual Premier Funds | Eagle Growth vs. Dreyfus Institutional Reserves | Eagle Growth vs. Blackrock Funds Iii | Eagle Growth vs. Plan Investment |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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