Correlation Between Tfa Alphagen and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen and Eagle Growth 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 Tfa Alphagen and Eagle Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tfa Alphagen Growth and Eagle Growth Income, you can compare the effects of market volatilities on Tfa Alphagen and Eagle Growth 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 Tfa Alphagen with a short position of Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Eagle Growth.
Diversification Opportunities for Tfa Alphagen and Eagle Growth
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tfa and Eagle is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Eagle Growth go up and down completely randomly.
Pair Corralation between Tfa Alphagen and Eagle Growth
Assuming the 90 days horizon Tfa Alphagen is expected to generate 1.12 times less return on investment than Eagle Growth. In addition to that, Tfa Alphagen is 1.34 times more volatile than Eagle Growth Income. It trades about 0.11 of its total potential returns per unit of risk. Eagle Growth Income is currently generating about 0.16 per unit of volatility. If you would invest 2,130 in Eagle Growth Income on September 1, 2024 and sell it today you would earn a total of 331.00 from holding Eagle Growth Income or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tfa Alphagen Growth vs. Eagle Growth Income
Performance |
| Timeline |
| Tfa Alphagen Growth |
| Eagle Growth Income |
Tfa Alphagen and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tfa Alphagen and Eagle Growth
The main advantage of trading using opposite Tfa Alphagen and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen position performs unexpectedly, Eagle Growth 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 Growth will offset losses from the drop in Eagle Growth's long position.| Tfa Alphagen vs. Franklin High Yield | Tfa Alphagen vs. California High Yield Municipal | Tfa Alphagen vs. Bbh Intermediate Municipal | Tfa Alphagen vs. Nuveen Arizona Municipal |
| Eagle Growth vs. Artisan Small Cap | Eagle Growth vs. Legg Mason Partners | Eagle Growth vs. Champlain Mid Cap | Eagle Growth vs. Chase Growth Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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