Correlation Between Eagle Mid and Harbor Capital
Can any of the company-specific risk be diversified away by investing in both Eagle Mid and Harbor Capital 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 Mid and Harbor Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mid Cap and Harbor Capital Appreciation, you can compare the effects of market volatilities on Eagle Mid and Harbor Capital 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 Mid with a short position of Harbor Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mid and Harbor Capital.
Diversification Opportunities for Eagle Mid and Harbor Capital
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eagle and Harbor is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap and Harbor Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Capital Appre and Eagle Mid 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 Mid Cap are associated (or correlated) with Harbor Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Capital Appre has no effect on the direction of Eagle Mid i.e., Eagle Mid and Harbor Capital go up and down completely randomly.
Pair Corralation between Eagle Mid and Harbor Capital
Assuming the 90 days horizon Eagle Mid Cap is expected to generate 0.53 times more return on investment than Harbor Capital. However, Eagle Mid Cap is 1.88 times less risky than Harbor Capital. It trades about -0.2 of its potential returns per unit of risk. Harbor Capital Appreciation is currently generating about -0.13 per unit of risk. If you would invest 9,464 in Eagle Mid Cap on September 24, 2024 and sell it today you would lose (476.00) from holding Eagle Mid Cap or give up 5.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Eagle Mid Cap vs. Harbor Capital Appreciation
Performance |
Timeline |
Eagle Mid Cap |
Harbor Capital Appre |
Eagle Mid and Harbor Capital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Mid and Harbor Capital
The main advantage of trading using opposite Eagle Mid and Harbor Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid position performs unexpectedly, Harbor Capital 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 Harbor Capital will offset losses from the drop in Harbor Capital's long position.Eagle Mid vs. Mfs Mid Cap | Eagle Mid vs. Janus Triton Fund | Eagle Mid vs. Europacific Growth Fund | Eagle Mid vs. Mfs International Value |
Harbor Capital vs. Harbor Vertible Securities | Harbor Capital vs. Harbor Diversified International | Harbor Capital vs. Harbor International Fund | Harbor Capital vs. Harbor International Small |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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