Correlation Between Teton Convertible and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Teton Convertible 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 Teton Convertible and Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teton Vertible Securities and Eagle Small Cap, you can compare the effects of market volatilities on Teton Convertible 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 Teton Convertible with a short position of Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teton Convertible and Eagle Small.
Diversification Opportunities for Teton Convertible and Eagle Small
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Teton and Eagle is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Teton Vertible Securities 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 Teton Convertible 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 Teton Vertible Securities 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 Teton Convertible i.e., Teton Convertible and Eagle Small go up and down completely randomly.
Pair Corralation between Teton Convertible and Eagle Small
Assuming the 90 days horizon Teton Vertible Securities is expected to generate 0.47 times more return on investment than Eagle Small. However, Teton Vertible Securities is 2.11 times less risky than Eagle Small. It trades about 0.38 of its potential returns per unit of risk. Eagle Small Cap is currently generating about 0.15 per unit of risk. If you would invest 1,382 in Teton Vertible Securities on August 28, 2024 and sell it today you would earn a total of 132.00 from holding Teton Vertible Securities or generate 9.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teton Vertible Securities vs. Eagle Small Cap
Performance |
| Timeline |
| Teton Vertible Securities |
| Eagle Small Cap |
Teton Convertible and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teton Convertible and Eagle Small
The main advantage of trading using opposite Teton Convertible and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teton Convertible 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.| Teton Convertible vs. Teton Westwood Balanced | Teton Convertible vs. Teton Westwood Balanced | Teton Convertible vs. Teton Westwood Balanced | Teton Convertible vs. Teton Westwood Balanced |
| Eagle Small vs. Pgim Jennison Technology | Eagle Small vs. Janus Global Technology | Eagle Small vs. Towpath Technology | Eagle Small vs. Biotechnology Ultrasector Profund |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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