Correlation Between 3M and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both 3M and Eagle Mid 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 3M and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3M Company and Eagle Mid Cap, you can compare the effects of market volatilities on 3M and Eagle Mid 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 3M with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and Eagle Mid.
Diversification Opportunities for 3M and Eagle Mid
Very good diversification
The 3 months correlation between 3M and Eagle is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and 3M 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 3M Company are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of 3M i.e., 3M and Eagle Mid go up and down completely randomly.
Pair Corralation between 3M and Eagle Mid
If you would invest 8,175 in Eagle Mid Cap on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Eagle Mid Cap or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
3M Company vs. Eagle Mid Cap
Performance |
| Timeline |
| 3M Company |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
3M and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and Eagle Mid
The main advantage of trading using opposite 3M and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, Eagle Mid 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 Mid will offset losses from the drop in Eagle Mid's long position.| 3M vs. Victory Integrity Smallmid Cap | 3M vs. Hilton Worldwide Holdings | 3M vs. NVIDIA | 3M vs. JPMorgan Chase Co |
| Eagle Mid vs. Blackrock Sm Cap | Eagle Mid vs. Small Cap Stock | Eagle Mid vs. Oppenheimer International Diversified | Eagle Mid vs. Davenport 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |