Correlation Between Eagle Growth and Columbia Capital

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Can any of the company-specific risk be diversified away by investing in both Eagle Growth and Columbia 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 Growth and Columbia Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Growth Income and Columbia Capital Allocation, you can compare the effects of market volatilities on Eagle Growth and Columbia 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 Growth with a short position of Columbia Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Columbia Capital.

Diversification Opportunities for Eagle Growth and Columbia Capital

0.55
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Eagle and Columbia is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income and Columbia Capital Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia Capital All and Eagle Growth 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 Growth Income are associated (or correlated) with Columbia Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Capital All has no effect on the direction of Eagle Growth i.e., Eagle Growth and Columbia Capital go up and down completely randomly.

Pair Corralation between Eagle Growth and Columbia Capital

Assuming the 90 days horizon Eagle Growth is expected to generate 1.36 times less return on investment than Columbia Capital. But when comparing it to its historical volatility, Eagle Growth Income is 1.01 times less risky than Columbia Capital. It trades about 0.11 of its potential returns per unit of risk. Columbia Capital Allocation is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,347  in Columbia Capital Allocation on September 1, 2025 and sell it today you would earn a total of  84.00  from holding Columbia Capital Allocation or generate 6.24% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Eagle Growth Income  vs.  Columbia Capital Allocation

 Performance 
       Timeline  
Eagle Growth Income 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Growth Income are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Eagle Growth is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Columbia Capital All 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Columbia Capital Allocation are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Columbia Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Eagle Growth and Columbia Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eagle Growth and Columbia Capital

The main advantage of trading using opposite Eagle Growth and Columbia Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Growth position performs unexpectedly, Columbia 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 Columbia Capital will offset losses from the drop in Columbia Capital's long position.
The idea behind Eagle Growth Income and Columbia Capital Allocation 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.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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