Correlation Between Balanced Fund and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Balanced Fund 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 Balanced Fund and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Balanced Fund Investor and Eagle Mid Cap, you can compare the effects of market volatilities on Balanced Fund 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 Balanced Fund with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and Eagle Mid.
Diversification Opportunities for Balanced Fund and Eagle Mid
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Balanced and Eagle is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Balanced Fund Investor 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 Balanced Fund 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 Balanced Fund Investor 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 Balanced Fund i.e., Balanced Fund and Eagle Mid go up and down completely randomly.
Pair Corralation between Balanced Fund and Eagle Mid
Assuming the 90 days horizon Balanced Fund is expected to generate 1.71 times less return on investment than Eagle Mid. But when comparing it to its historical volatility, Balanced Fund Investor is 2.09 times less risky than Eagle Mid. It trades about 0.11 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 7,129 in Eagle Mid Cap on September 13, 2024 and sell it today you would earn a total of 1,046 from holding Eagle Mid Cap or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 29.35% |
| Values | Daily Returns |
Balanced Fund Investor vs. Eagle Mid Cap
Performance |
| Timeline |
| Balanced Fund Investor |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Balanced Fund and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Balanced Fund and Eagle Mid
The main advantage of trading using opposite Balanced Fund and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Balanced Fund 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.| Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
| Eagle Mid vs. Franklin Growth Opportunities | Eagle Mid vs. Praxis Growth Index | Eagle Mid vs. L Abbett Growth | Eagle Mid vs. Pace Smallmedium Growth |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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