Correlation Between Eagle Pointome and Cornerstone Strategic

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

By analyzing existing cross correlation between Eagle Pointome and Cornerstone Strategic Return, you can compare the effects of market volatilities on Eagle Pointome and Cornerstone Strategic 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 Pointome with a short position of Cornerstone Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pointome and Cornerstone Strategic.

Diversification Opportunities for Eagle Pointome and Cornerstone Strategic

0.06

Correlation Coefficient

Eagle Pointome  Cornerstone Strategic

Significant diversification

The 3 months correlation between Eagle and Cornerstone is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pointome and Cornerstone Strategic Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cornerstone Strategic and Eagle Pointome 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 Pointome are associated (or correlated) with Cornerstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cornerstone Strategic has no effect on the direction of Eagle Pointome i.e., Eagle Pointome and Cornerstone Strategic go up and down completely randomly.

Pair Corralation between Eagle Pointome and Cornerstone Strategic

Considering the 90-day investment horizon Eagle Pointome is expected to generate 0.32 times more return on investment than Cornerstone Strategic. However, Eagle Pointome is 3.14 times less risky than Cornerstone Strategic. It trades about 0.14 of its potential returns per unit of risk. Cornerstone Strategic Return is currently generating about -0.11 per unit of risk. If you would invest  1,498  in Eagle Pointome on December 1, 2024 and sell it today you would earn a total of  92.00  from holding Eagle Pointome or generate 6.14% return on investment over 90 days.

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

Eagle Pointome  vs.  Cornerstone Strategic Return

Eagle Pointome

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Pointome are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain forward indicators, Eagle Pointome may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Cornerstone Strategic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cornerstone Strategic Return has generated negative risk-adjusted returns adding no value to fund investors. Despite unfluctuating performance in the last few months, the Fund's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the mutual fund stockholders.

Pair Trading with Eagle Pointome and Cornerstone Strategic

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

The idea behind Eagle Pointome and Cornerstone Strategic Return 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.