Correlation Between Growth Strategy and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Growth Strategy 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 Growth Strategy and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Strategy Fund and Eagle Mid Cap, you can compare the effects of market volatilities on Growth Strategy 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 Growth Strategy with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Strategy and Eagle Mid.
Diversification Opportunities for Growth Strategy and Eagle Mid
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Growth and Eagle is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Growth Strategy Fund 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 Growth Strategy 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 Growth Strategy Fund 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 Growth Strategy i.e., Growth Strategy and Eagle Mid go up and down completely randomly.
Pair Corralation between Growth Strategy and Eagle Mid
Assuming the 90 days horizon Growth Strategy Fund is expected to generate 2.63 times more return on investment than Eagle Mid. However, Growth Strategy is 2.63 times more volatile than Eagle Mid Cap. It trades about 0.08 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.04 per unit of risk. If you would invest 1,009 in Growth Strategy Fund on September 12, 2024 and sell it today you would earn a total of 195.00 from holding Growth Strategy Fund or generate 19.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.14% |
| Values | Daily Returns |
Growth Strategy Fund vs. Eagle Mid Cap
Performance |
| Timeline |
| Growth Strategy |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Growth Strategy and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Strategy and Eagle Mid
The main advantage of trading using opposite Growth Strategy and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Strategy 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.| Growth Strategy vs. Smallcap Growth Fund | Growth Strategy vs. T Rowe Price | Growth Strategy vs. L Abbett Growth | Growth Strategy vs. Rational Defensive Growth |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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