Correlation Between Eagle Growth and Mid Cap
Can any of the company-specific risk be diversified away by investing in both Eagle Growth and Mid Cap 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 Mid Cap 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 Mid Cap Index, you can compare the effects of market volatilities on Eagle Growth and Mid Cap 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 Mid Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Mid Cap.
Diversification Opportunities for Eagle Growth and Mid Cap
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Mid is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income and Mid Cap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Cap Index 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 Mid Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Cap Index has no effect on the direction of Eagle Growth i.e., Eagle Growth and Mid Cap go up and down completely randomly.
Pair Corralation between Eagle Growth and Mid Cap
Assuming the 90 days horizon Eagle Growth Income is expected to generate 0.65 times more return on investment than Mid Cap. However, Eagle Growth Income is 1.53 times less risky than Mid Cap. It trades about 0.19 of its potential returns per unit of risk. Mid Cap Index is currently generating about 0.12 per unit of risk. If you would invest 1,922 in Eagle Growth Income on June 6, 2025 and sell it today you would earn a total of 130.00 from holding Eagle Growth Income or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Growth Income vs. Mid Cap Index
Performance |
| Timeline |
| Eagle Growth Income |
| Mid Cap Index |
Eagle Growth and Mid Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Growth and Mid Cap
The main advantage of trading using opposite Eagle Growth and Mid Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Growth position performs unexpectedly, Mid Cap 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 Mid Cap will offset losses from the drop in Mid Cap's long position.| Eagle Growth vs. Guidemark Large Cap | Eagle Growth vs. Tax Managed Large Cap | Eagle Growth vs. Qs Large Cap | Eagle Growth vs. Semiconductor Ultrasector Profund |
| Mid Cap vs. Barings Active Short | Mid Cap vs. Short Intermediate Bond Fund | Mid Cap vs. Ultra Short Fixed Income | Mid Cap vs. Westwood Short Duration |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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