Correlation Between Eagle Point and Voya Global
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Voya Global 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 Voya Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Income and Voya Global Equity, you can compare the effects of market volatilities on Eagle Point and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Voya Global.
Diversification Opportunities for Eagle Point and Voya Global
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Voya is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Income and Voya Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Equity 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 Income are associated (or correlated) with Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Equity has no effect on the direction of Eagle Point i.e., Eagle Point and Voya Global go up and down completely randomly.
Pair Corralation between Eagle Point and Voya Global
Given the investment horizon of 90 days Eagle Point Income is expected to generate 0.63 times more return on investment than Voya Global. However, Eagle Point Income is 1.59 times less risky than Voya Global. It trades about 0.07 of its potential returns per unit of risk. Voya Global Equity is currently generating about -0.13 per unit of risk. If you would invest 2,370 in Eagle Point Income on September 25, 2024 and sell it today you would earn a total of 18.00 from holding Eagle Point Income or generate 0.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Eagle Point Income vs. Voya Global Equity
Performance |
Timeline |
Eagle Point Income |
Voya Global Equity |
Eagle Point and Voya Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Point and Voya Global
The main advantage of trading using opposite Eagle Point and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.Eagle Point vs. XAI Octagon Floating | Eagle Point vs. Eagle Point Credit | Eagle Point vs. Ares Dynamic Credit | Eagle Point vs. Kkr Income Opportunities |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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