Correlation Between Eagle Growth and Eagle Mid

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Can any of the company-specific risk be diversified away by investing in both Eagle Growth and Eagle Mid 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 Growth and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Growth Income and Eagle Mid Cap, you can compare the effects of market volatilities on Eagle Growth and Eagle Mid 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 Growth with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Eagle Mid.

Diversification Opportunities for Eagle Growth and Eagle Mid

EagleEagleDiversified AwayEagleEagleDiversified Away100%
0.97
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Eagle and Eagle is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and Eagle Growth 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 Growth Income are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Eagle Growth i.e., Eagle Growth and Eagle Mid go up and down completely randomly.

Pair Corralation between Eagle Growth and Eagle Mid

Assuming the 90 days horizon Eagle Growth Income is expected to generate 0.98 times more return on investment than Eagle Mid. However, Eagle Growth Income is 1.02 times less risky than Eagle Mid. It trades about -0.12 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about -0.14 per unit of risk. If you would invest  2,452  in Eagle Growth Income on November 26, 2024 and sell it today you would lose (343.00) from holding Eagle Growth Income or give up 13.99% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Eagle Growth Income  vs.  Eagle Mid Cap

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-505
JavaScript chart by amCharts 3.21.15HRCVX HAGAX
       Timeline  
Eagle Growth Income 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Eagle Growth Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2020.52121.52222.52323.52424.5
Eagle Mid Cap 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Eagle Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb7274767880828486

Eagle Growth and Eagle Mid Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.13-2.36-1.59-0.82-0.05220.651.352.052.753.45 0.070.080.090.100.11
JavaScript chart by amCharts 3.21.15HRCVX HAGAX
       Returns  

Pair Trading with Eagle Growth and Eagle Mid

The main advantage of trading using opposite Eagle Growth and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Growth position performs unexpectedly, Eagle Mid 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 Mid will offset losses from the drop in Eagle Mid's long position.
The idea behind Eagle Growth Income and Eagle Mid Cap pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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