Correlation Between Eagle Small and Litman Gregory
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Litman Gregory 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 Small and Litman Gregory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Small Cap and Litman Gregory Masters, you can compare the effects of market volatilities on Eagle Small and Litman Gregory 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 Small with a short position of Litman Gregory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Litman Gregory.
Diversification Opportunities for Eagle Small and Litman Gregory
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eagle and Litman is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Litman Gregory Masters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Litman Gregory Masters and Eagle Small 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 Small Cap are associated (or correlated) with Litman Gregory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Litman Gregory Masters has no effect on the direction of Eagle Small i.e., Eagle Small and Litman Gregory go up and down completely randomly.
Pair Corralation between Eagle Small and Litman Gregory
Assuming the 90 days horizon Eagle Small Cap is expected to generate 1.54 times more return on investment than Litman Gregory. However, Eagle Small is 1.54 times more volatile than Litman Gregory Masters. It trades about 0.06 of its potential returns per unit of risk. Litman Gregory Masters is currently generating about 0.09 per unit of risk. If you would invest 2,211 in Eagle Small Cap on September 11, 2025 and sell it today you would earn a total of 95.00 from holding Eagle Small Cap or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Eagle Small Cap vs. Litman Gregory Masters
Performance |
| Timeline |
| Eagle Small Cap |
| Litman Gregory Masters |
Eagle Small and Litman Gregory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Litman Gregory
The main advantage of trading using opposite Eagle Small and Litman Gregory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Litman Gregory 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 Litman Gregory will offset losses from the drop in Litman Gregory's long position.| Eagle Small vs. Payden Government Fund | Eagle Small vs. Virtus Seix Government | Eagle Small vs. Dws Government Money | Eagle Small vs. Us Government Securities |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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