Correlation Between Eagle Mlp and Bats Series

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

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

Diversification Opportunities for Eagle Mlp and Bats Series

0.6

Correlation Coefficient

Eagle Mlp  Bats Series

Poor diversification

The 3 months correlation between Eagle and Bats is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Bats Series S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bats Series S and Eagle Mlp 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 Mlp Strategy are associated (or correlated) with Bats Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bats Series S has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Bats Series go up and down completely randomly.

Pair Corralation between Eagle Mlp and Bats Series

Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 9.21 times more return on investment than Bats Series. However, Eagle Mlp is 9.21 times more volatile than Bats Series S. It trades about 0.23 of its potential returns per unit of risk. Bats Series S is currently generating about 0.13 per unit of risk. If you would invest  983.00  in Eagle Mlp Strategy on October 22, 2024 and sell it today you would earn a total of  173.00  from holding Eagle Mlp Strategy or generate 17.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Eagle Mlp Strategy  vs.  Bats Series S

Eagle Mlp Strategy

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mlp Strategy are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mlp showed solid returns over the last few months and may actually be approaching a breakup point.

Bats Series S

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Bats Series S are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Bats Series is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eagle Mlp and Bats Series

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

The idea behind Eagle Mlp Strategy and Bats Series S 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.