Correlation Between Eagle Capital and Touchstone Ultra
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Touchstone Ultra 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 Touchstone Ultra 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 Touchstone Ultra Short, you can compare the effects of market volatilities on Eagle Capital and Touchstone Ultra 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 Touchstone Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Touchstone Ultra.
Diversification Opportunities for Eagle Capital and Touchstone Ultra
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eagle and Touchstone is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Appreciation and Touchstone Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Ultra Short 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 Touchstone Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Ultra Short has no effect on the direction of Eagle Capital i.e., Eagle Capital and Touchstone Ultra go up and down completely randomly.
Pair Corralation between Eagle Capital and Touchstone Ultra
Assuming the 90 days horizon Eagle Capital Appreciation is expected to generate 13.01 times more return on investment than Touchstone Ultra. However, Eagle Capital is 13.01 times more volatile than Touchstone Ultra Short. It trades about 0.08 of its potential returns per unit of risk. Touchstone Ultra Short is currently generating about 0.25 per unit of risk. If you would invest 5,222 in Eagle Capital Appreciation on September 2, 2024 and sell it today you would earn a total of 1,342 from holding Eagle Capital Appreciation or generate 25.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Capital Appreciation vs. Touchstone Ultra Short
Performance |
| Timeline |
| Eagle Capital Apprec |
| Touchstone Ultra Short |
Eagle Capital and Touchstone Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Touchstone Ultra
The main advantage of trading using opposite Eagle Capital and Touchstone Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Touchstone Ultra 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 Touchstone Ultra will offset losses from the drop in Touchstone Ultra'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 |
| Touchstone Ultra vs. Touchstone Small Cap | Touchstone Ultra vs. Touchstone Sands Capital | Touchstone Ultra vs. Mid Cap Growth | Touchstone Ultra vs. Mid Cap Growth |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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