Correlation Between Eagle Small and American Funds
Can any of the company-specific risk be diversified away by investing in both Eagle Small and American Funds 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 American Funds 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 American Funds 2025, you can compare the effects of market volatilities on Eagle Small and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and American Funds.
Diversification Opportunities for Eagle Small and American Funds
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and American is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and American Funds 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2025 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2025 has no effect on the direction of Eagle Small i.e., Eagle Small and American Funds go up and down completely randomly.
Pair Corralation between Eagle Small and American Funds
Assuming the 90 days horizon Eagle Small Cap is expected to generate 2.74 times more return on investment than American Funds. However, Eagle Small is 2.74 times more volatile than American Funds 2025. It trades about 0.04 of its potential returns per unit of risk. American Funds 2025 is currently generating about 0.12 per unit of risk. If you would invest 2,110 in Eagle Small Cap on September 14, 2024 and sell it today you would earn a total of 537.00 from holding Eagle Small Cap or generate 25.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. American Funds 2025
Performance |
| Timeline |
| Eagle Small Cap |
| American Funds 2025 |
Eagle Small and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and American Funds
The main advantage of trading using opposite Eagle Small and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' 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 |
| American Funds vs. Ab Small Cap | American Funds vs. Old Westbury Small | American Funds vs. Glg Intl Small | American Funds vs. Eagle Small Cap |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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