Correlation Between P10 and Eagle Point
Can any of the company-specific risk be diversified away by investing in both P10 and Eagle Point 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 P10 and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between P10 Inc and Eagle Point Credit, you can compare the effects of market volatilities on P10 and Eagle Point 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 P10 with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of P10 and Eagle Point.
Diversification Opportunities for P10 and Eagle Point
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between P10 and Eagle is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding P10 Inc and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit and P10 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 P10 Inc are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of P10 i.e., P10 and Eagle Point go up and down completely randomly.
Pair Corralation between P10 and Eagle Point
Allowing for the 90-day total investment horizon P10 Inc is expected to generate 2.38 times more return on investment than Eagle Point. However, P10 is 2.38 times more volatile than Eagle Point Credit. It trades about 0.49 of its potential returns per unit of risk. Eagle Point Credit is currently generating about -0.15 per unit of risk. If you would invest 1,125 in P10 Inc on August 31, 2024 and sell it today you would earn a total of 292.00 from holding P10 Inc or generate 25.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
P10 Inc vs. Eagle Point Credit
Performance |
| Timeline |
| P10 Inc |
| Eagle Point Credit |
P10 and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with P10 and Eagle Point
The main advantage of trading using opposite P10 and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if P10 position performs unexpectedly, Eagle Point 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 Point will offset losses from the drop in Eagle Point's long position.| P10 vs. Federated Premier Municipal | P10 vs. Blackrock Muniyield | P10 vs. Diamond Hill Investment | P10 vs. NXG NextGen Infrastructure |
| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |