Correlation Between Eagle Point and Center Coast

Can any of the company-specific risk be diversified away by investing in both Eagle Point and Center Coast 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 Eagle Point and Center Coast into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eagle Point Credit and Center Coast Mlp, you can compare the effects of market volatilities on Eagle Point and Center Coast 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 Eagle Point with a short position of Center Coast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Center Coast.

Diversification Opportunities for Eagle Point and Center Coast

0.0

Correlation Coefficient

Eagle Point  Center Coast

Pay attention - limited upside

The 3 months correlation between Eagle and Center is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Center Coast Mlp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Center Coast Mlp and Eagle Point 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 Eagle Point Credit are associated (or correlated) with Center Coast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Center Coast Mlp has no effect on the direction of Eagle Point i.e., Eagle Point and Center Coast go up and down completely randomly.

Pair Corralation between Eagle Point and Center Coast

If you would invest  864.00  in Eagle Point Credit on December 2, 2024 and sell it today you would earn a total of  12.00  from holding Eagle Point Credit or generate 1.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eagle Point Credit  vs.  Center Coast Mlp

Eagle Point Credit

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Point Credit are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Eagle Point is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Center Coast Mlp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Center Coast Mlp has generated negative risk-adjusted returns adding no value to fund investors. In spite of very healthy technical and fundamental indicators, Center Coast is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Eagle Point and Center Coast

The main advantage of trading using opposite Eagle Point and Center Coast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Center Coast 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 Center Coast will offset losses from the drop in Center Coast's long position.

The idea behind Eagle Point Credit and Center Coast Mlp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.