Correlation Between Eagle Capital and American Funds
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and American Funds 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 American Funds 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 American Funds The, you can compare the effects of market volatilities on Eagle Capital and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and American Funds.
Diversification Opportunities for Eagle Capital and American Funds
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and American is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Appreciation and American Funds The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds has no effect on the direction of Eagle Capital i.e., Eagle Capital and American Funds go up and down completely randomly.
Pair Corralation between Eagle Capital and American Funds
Assuming the 90 days horizon Eagle Capital Appreciation is expected to generate 1.29 times more return on investment than American Funds. However, Eagle Capital is 1.29 times more volatile than American Funds The. It trades about 0.19 of its potential returns per unit of risk. American Funds The is currently generating about 0.11 per unit of risk. If you would invest 6,586 in Eagle Capital Appreciation on September 13, 2024 and sell it today you would earn a total of 234.00 from holding Eagle Capital Appreciation or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Eagle Capital Appreciation vs. American Funds The
Performance |
| Timeline |
| Eagle Capital Apprec |
| American Funds |
Eagle Capital and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and American Funds
The main advantage of trading using opposite Eagle Capital and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' 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 |
| American Funds vs. Tekla Healthcare Opportunities | American Funds vs. Fidelity Advisor Health | American Funds vs. The Gabelli Healthcare | American Funds vs. Hartford Healthcare Hls |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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