Correlation Between SCCB and Eagle Point
Can any of the company-specific risk be diversified away by investing in both SCCB 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 SCCB and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCCB and Eagle Point Credit, you can compare the effects of market volatilities on SCCB 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 SCCB with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCCB and Eagle Point.
Diversification Opportunities for SCCB and Eagle Point
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SCCB and Eagle is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SCCB 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 SCCB 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 SCCB 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 SCCB i.e., SCCB and Eagle Point go up and down completely randomly.
Pair Corralation between SCCB and Eagle Point
If you would invest 2,477 in Eagle Point Credit on September 1, 2024 and sell it today you would earn a total of 3.00 from holding Eagle Point Credit or generate 0.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
SCCB vs. Eagle Point Credit
Performance |
| Timeline |
| SCCB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eagle Point Credit |
SCCB and Eagle Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCCB and Eagle Point
The main advantage of trading using opposite SCCB and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCCB 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.| SCCB vs. Sachem Capital Corp | SCCB vs. Sachem Capital Corp | SCCB vs. B Riley Financial | SCCB vs. Eagle Point Credit |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| CEOs Directory Screen CEOs from public companies around the world |