Correlation Between Eagle Capital and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Eagle Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on Eagle Capital and Eagle Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Eagle Small.
Diversification Opportunities for Eagle Capital and Eagle Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Eagle is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Appreciation and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Eagle Capital i.e., Eagle Capital and Eagle Small go up and down completely randomly.
Pair Corralation between Eagle Capital and Eagle Small
Assuming the 90 days horizon Eagle Capital Appreciation is expected to generate 0.84 times more return on investment than Eagle Small. However, Eagle Capital Appreciation is 1.19 times less risky than Eagle Small. It trades about 0.04 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.0 per unit of risk. If you would invest 4,707 in Eagle Capital Appreciation on August 24, 2024 and sell it today you would earn a total of 1,365 from holding Eagle Capital Appreciation or generate 29.0% 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 Small Cap
Performance |
| Timeline |
| Eagle Capital Apprec |
| Eagle Small Cap |
Eagle Capital and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Eagle Small
The main advantage of trading using opposite Eagle Capital and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Eagle Small 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 Small will offset losses from the drop in Eagle Small's long position.| Eagle Capital vs. HUMANA INC | Eagle Capital vs. Aquagold International | Eagle Capital vs. Barloworld Ltd ADR | Eagle Capital vs. Morningstar Unconstrained Allocation |
| Eagle Small vs. Vanguard Institutional Short Term | Eagle Small vs. Nuveen Short Term | Eagle Small vs. Guggenheim Long Short | Eagle Small vs. Locorr Longshort Modities |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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