Correlation Between Eagle Mlp and Franklin New
Can any of the company-specific risk be diversified away by investing in both Eagle Mlp and Franklin New 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 Franklin New 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 Franklin New York, you can compare the effects of market volatilities on Eagle Mlp and Franklin New 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 Franklin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Franklin New.
Diversification Opportunities for Eagle Mlp and Franklin New
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eagle and Franklin is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Franklin New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin New York 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 Franklin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin New York has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Franklin New go up and down completely randomly.
Pair Corralation between Eagle Mlp and Franklin New
Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 5.28 times more return on investment than Franklin New. However, Eagle Mlp is 5.28 times more volatile than Franklin New York. It trades about 0.24 of its potential returns per unit of risk. Franklin New York is currently generating about -0.03 per unit of risk. If you would invest 979.00 in Eagle Mlp Strategy on October 20, 2024 and sell it today you would earn a total of 177.00 from holding Eagle Mlp Strategy or generate 18.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Eagle Mlp Strategy vs. Franklin New York
Performance |
Timeline |
Eagle Mlp Strategy |
Franklin New York |
Eagle Mlp and Franklin New Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Mlp and Franklin New
The main advantage of trading using opposite Eagle Mlp and Franklin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mlp position performs unexpectedly, Franklin New 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 Franklin New will offset losses from the drop in Franklin New's long position.Eagle Mlp vs. Icon Information Technology | ||
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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