Correlation Between Eagle Capital and Monetta Young
Can any of the company-specific risk be diversified away by investing in both Eagle Capital and Monetta Young 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 Capital and Monetta Young into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Capital Growth and Monetta Young Investor, you can compare the effects of market volatilities on Eagle Capital and Monetta Young 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 Capital with a short position of Monetta Young. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Monetta Young.
Diversification Opportunities for Eagle Capital and Monetta Young
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eagle and Monetta is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth and Monetta Young Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monetta Young Investor and Eagle Capital 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 Capital Growth are associated (or correlated) with Monetta Young. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monetta Young Investor has no effect on the direction of Eagle Capital i.e., Eagle Capital and Monetta Young go up and down completely randomly.
Pair Corralation between Eagle Capital and Monetta Young
Considering the 90-day investment horizon Eagle Capital is expected to generate 1.0 times less return on investment than Monetta Young. In addition to that, Eagle Capital is 2.36 times more volatile than Monetta Young Investor. It trades about 0.05 of its total potential returns per unit of risk. Monetta Young Investor is currently generating about 0.11 per unit of volatility. If you would invest 2,088 in Monetta Young Investor on July 28, 2025 and sell it today you would earn a total of 119.00 from holding Monetta Young Investor or generate 5.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Capital Growth vs. Monetta Young Investor
Performance |
| Timeline |
| Eagle Capital Growth |
| Monetta Young Investor |
Eagle Capital and Monetta Young Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Monetta Young
The main advantage of trading using opposite Eagle Capital and Monetta Young positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital position performs unexpectedly, Monetta Young 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 Monetta Young will offset losses from the drop in Monetta Young's long position.| Eagle Capital vs. Amg Managers Cadence | Eagle Capital vs. Monetta Young Investor | Eagle Capital vs. Manager Directed Portfolios | Eagle Capital vs. Strategic Advisers Small Mid |
| Monetta Young vs. Manager Directed Portfolios | Monetta Young vs. Amg Managers Cadence | Monetta Young vs. Eagle Capital Growth | Monetta Young vs. Nuveen Large Cap |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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