Correlation Between Eagle Small and Total Return
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Total Return 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 Total Return 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 Total Return Bond, you can compare the effects of market volatilities on Eagle Small and Total Return 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 Total Return. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Total Return.
Diversification Opportunities for Eagle Small and Total Return
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eagle and Total is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Total Return Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Total Return Bond 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 Total Return. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Total Return Bond has no effect on the direction of Eagle Small i.e., Eagle Small and Total Return go up and down completely randomly.
Pair Corralation between Eagle Small and Total Return
Assuming the 90 days horizon Eagle Small Cap is expected to generate 4.07 times more return on investment than Total Return. However, Eagle Small is 4.07 times more volatile than Total Return Bond. It trades about 0.26 of its potential returns per unit of risk. Total Return Bond is currently generating about 0.09 per unit of risk. If you would invest 3,023 in Eagle Small Cap on September 5, 2024 and sell it today you would earn a total of 240.00 from holding Eagle Small Cap or generate 7.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. Total Return Bond
Performance |
| Timeline |
| Eagle Small Cap |
| Total Return Bond |
Eagle Small and Total Return Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Total Return
The main advantage of trading using opposite Eagle Small and Total Return positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Total Return 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 Total Return will offset losses from the drop in Total Return's long position.| Eagle Small vs. Chartwell Short Duration | Eagle Small vs. Carillon Chartwell Short | Eagle Small vs. Chartwell Short Duration | Eagle Small vs. Carillon Chartwell Short |
| Total Return vs. Prudential Real Estate | Total Return vs. Fidelity Real Estate | Total Return vs. Virtus Real Estate | Total Return vs. Goldman Sachs Real |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |