Correlation Between Eagle Small and Amg Timessquare
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Amg Timessquare 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 Amg Timessquare 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 Amg Timessquare Mid, you can compare the effects of market volatilities on Eagle Small and Amg Timessquare 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 Amg Timessquare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Amg Timessquare.
Diversification Opportunities for Eagle Small and Amg Timessquare
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Amg is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Amg Timessquare Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Timessquare Mid 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 Amg Timessquare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Timessquare Mid has no effect on the direction of Eagle Small i.e., Eagle Small and Amg Timessquare go up and down completely randomly.
Pair Corralation between Eagle Small and Amg Timessquare
Assuming the 90 days horizon Eagle Small is expected to generate 1.37 times less return on investment than Amg Timessquare. In addition to that, Eagle Small is 1.31 times more volatile than Amg Timessquare Mid. It trades about 0.04 of its total potential returns per unit of risk. Amg Timessquare Mid is currently generating about 0.08 per unit of volatility. If you would invest 1,369 in Amg Timessquare Mid on September 12, 2024 and sell it today you would earn a total of 545.00 from holding Amg Timessquare Mid or generate 39.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. Amg Timessquare Mid
Performance |
| Timeline |
| Eagle Small Cap |
| Amg Timessquare Mid |
Eagle Small and Amg Timessquare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Amg Timessquare
The main advantage of trading using opposite Eagle Small and Amg Timessquare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Amg Timessquare 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 Amg Timessquare will offset losses from the drop in Amg Timessquare's long position.| Eagle Small vs. Small Cap Stock | Eagle Small vs. Pgim Jennison Diversified | Eagle Small vs. Jhancock Diversified Macro | Eagle Small vs. Pioneer Diversified High |
| Amg Timessquare vs. Total Return Bond | Amg Timessquare vs. T Rowe Price | Amg Timessquare vs. Victory Sycamore Small | Amg Timessquare vs. Mfs Emerging Markets |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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