Correlation Between Eagle Small and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Strategic Asset 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 Strategic Asset 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 Strategic Asset Management, you can compare the effects of market volatilities on Eagle Small and Strategic Asset 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Strategic Asset.
Diversification Opportunities for Eagle Small and Strategic Asset
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Strategic is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Eagle Small i.e., Eagle Small and Strategic Asset go up and down completely randomly.
Pair Corralation between Eagle Small and Strategic Asset
Assuming the 90 days horizon Eagle Small is expected to generate 1.26 times less return on investment than Strategic Asset. In addition to that, Eagle Small is 1.8 times more volatile than Strategic Asset Management. It trades about 0.06 of its total potential returns per unit of risk. Strategic Asset Management is currently generating about 0.13 per unit of volatility. If you would invest 1,871 in Strategic Asset Management on September 14, 2024 and sell it today you would earn a total of 476.00 from holding Strategic Asset Management or generate 25.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.9% |
| Values | Daily Returns |
Eagle Small Cap vs. Strategic Asset Management
Performance |
| Timeline |
| Eagle Small Cap |
| Strategic Asset Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Eagle Small and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Strategic Asset
The main advantage of trading using opposite Eagle Small and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.| Eagle Small vs. Carillon Chartwell Short | Eagle Small vs. Chartwell Short Duration | Eagle Small vs. Carillon Chartwell Short | Eagle Small vs. Eagle Growth Income |
| Strategic Asset vs. Eagle Small Cap | Strategic Asset vs. Ab Small Cap | Strategic Asset vs. Sp Smallcap 600 | Strategic Asset vs. Glg Intl Small |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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