Correlation Between Eagle Small and Global Gold
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Global Gold 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 Small and Global Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Small Cap and Global Gold Fund, you can compare the effects of market volatilities on Eagle Small and Global Gold 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 Small with a short position of Global Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Global Gold.
Diversification Opportunities for Eagle Small and Global Gold
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eagle and Global is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Global Gold Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Gold Fund and Eagle Small 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 Small Cap are associated (or correlated) with Global Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Gold Fund has no effect on the direction of Eagle Small i.e., Eagle Small and Global Gold go up and down completely randomly.
Pair Corralation between Eagle Small and Global Gold
Assuming the 90 days horizon Eagle Small Cap is expected to generate 0.6 times more return on investment than Global Gold. However, Eagle Small Cap is 1.65 times less risky than Global Gold. It trades about 0.18 of its potential returns per unit of risk. Global Gold Fund is currently generating about 0.05 per unit of risk. If you would invest 2,397 in Eagle Small Cap on September 2, 2024 and sell it today you would earn a total of 313.00 from holding Eagle Small Cap or generate 13.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. Global Gold Fund
Performance |
| Timeline |
| Eagle Small Cap |
| Global Gold Fund |
Eagle Small and Global Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Global Gold
The main advantage of trading using opposite Eagle Small and Global Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Global Gold 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 Global Gold will offset losses from the drop in Global Gold's long position.| Eagle Small vs. Qs Moderate Growth | Eagle Small vs. Moderately Aggressive Balanced | Eagle Small vs. Transamerica Cleartrack Retirement | Eagle Small vs. Multimanager Lifestyle Moderate |
| Global Gold vs. T Rowe Price | Global Gold vs. Nuveen Arizona Municipal | Global Gold vs. Thrivent Income Fund | Global Gold vs. T Rowe Price |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |