Correlation Between Eagle Small and Eagle Capital
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Eagle Capital 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 Eagle Capital 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 Eagle Capital Appreciation, you can compare the effects of market volatilities on Eagle Small and Eagle Capital 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 Eagle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Eagle Capital.
Diversification Opportunities for Eagle Small and Eagle Capital
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Eagle is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Eagle Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Capital Apprec 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 Eagle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Capital Apprec has no effect on the direction of Eagle Small i.e., Eagle Small and Eagle Capital go up and down completely randomly.
Pair Corralation between Eagle Small and Eagle Capital
Assuming the 90 days horizon Eagle Small Cap is expected to under-perform the Eagle Capital. In addition to that, Eagle Small is 1.0 times more volatile than Eagle Capital Appreciation. It trades about -0.07 of its total potential returns per unit of risk. Eagle Capital Appreciation is currently generating about -0.01 per unit of volatility. If you would invest 5,259 in Eagle Capital Appreciation on January 12, 2025 and sell it today you would lose (118.00) from holding Eagle Capital Appreciation or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. Eagle Capital Appreciation
Performance |
| Timeline |
| Eagle Small Cap |
| Eagle Capital Apprec |
Eagle Small and Eagle Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Eagle Capital
The main advantage of trading using opposite Eagle Small and Eagle Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Eagle Capital 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 Capital will offset losses from the drop in Eagle Capital's long position.| Eagle Small vs. Fidelity Advisor Health | Eagle Small vs. Alphacentric Lifesci Healthcare | Eagle Small vs. Live Oak Health | Eagle Small vs. Hartford Healthcare Hls |
| Eagle Capital vs. Chartwell Short Duration | Eagle Capital vs. Carillon Chartwell Short | Eagle Capital vs. Chartwell Short Duration | Eagle Capital vs. Carillon Chartwell Short |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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