Correlation Between Valic Company and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Valic Company and Eagle Small 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 Valic Company and Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Eagle Small Cap, you can compare the effects of market volatilities on Valic Company and Eagle Small 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 Valic Company with a short position of Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Eagle Small.
Diversification Opportunities for Valic Company and Eagle Small
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Valic and Eagle is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap and Valic Company 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 Valic Company I are associated (or correlated) with Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Valic Company i.e., Valic Company and Eagle Small go up and down completely randomly.
Pair Corralation between Valic Company and Eagle Small
Assuming the 90 days horizon Valic Company is expected to generate 1.0 times less return on investment than Eagle Small. In addition to that, Valic Company is 1.17 times more volatile than Eagle Small Cap. It trades about 0.17 of its total potential returns per unit of risk. Eagle Small Cap is currently generating about 0.2 per unit of volatility. If you would invest 3,157 in Eagle Small Cap on August 24, 2024 and sell it today you would earn a total of 203.00 from holding Eagle Small Cap or generate 6.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Eagle Small Cap
Performance |
| Timeline |
| Valic Company I |
| Eagle Small Cap |
Valic Company and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Eagle Small
The main advantage of trading using opposite Valic Company and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Eagle Small 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 Small will offset losses from the drop in Eagle Small's long position.| Valic Company vs. Vanguard Small Cap Value | Valic Company vs. Vanguard Small Cap Value | Valic Company vs. Us Small Cap | Valic Company vs. Us Targeted Value |
| Eagle Small vs. Eagle Growth Income | Eagle Small vs. Eagle Growth Income | Eagle Small vs. Eagle Capital Appreciation | Eagle Small vs. Eagle Capital Appreciation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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