Correlation Between Eagle Small and Balanced Strategy
Can any of the company-specific risk be diversified away by investing in both Eagle Small and Balanced Strategy 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 Balanced Strategy 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 Balanced Strategy Fund, you can compare the effects of market volatilities on Eagle Small and Balanced Strategy 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 Balanced Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Small and Balanced Strategy.
Diversification Opportunities for Eagle Small and Balanced Strategy
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eagle and Balanced is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Small Cap and Balanced Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Strategy 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 Balanced Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Strategy has no effect on the direction of Eagle Small i.e., Eagle Small and Balanced Strategy go up and down completely randomly.
Pair Corralation between Eagle Small and Balanced Strategy
Assuming the 90 days horizon Eagle Small Cap is expected to generate 2.41 times more return on investment than Balanced Strategy. However, Eagle Small is 2.41 times more volatile than Balanced Strategy Fund. It trades about 0.15 of its potential returns per unit of risk. Balanced Strategy Fund is currently generating about 0.21 per unit of risk. If you would invest 1,987 in Eagle Small Cap on June 5, 2025 and sell it today you would earn a total of 183.00 from holding Eagle Small Cap or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Small Cap vs. Balanced Strategy Fund
Performance |
| Timeline |
| Eagle Small Cap |
| Balanced Strategy |
Eagle Small and Balanced Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Small and Balanced Strategy
The main advantage of trading using opposite Eagle Small and Balanced Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Small position performs unexpectedly, Balanced Strategy 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 Balanced Strategy will offset losses from the drop in Balanced Strategy's long position.| Eagle Small vs. L Abbett Growth | Eagle Small vs. Needham Aggressive Growth | Eagle Small vs. Vanguard Mega Cap | Eagle Small vs. Aston Montag Caldwell |
| Balanced Strategy vs. International Developed Markets | Balanced Strategy vs. Global Real Estate | Balanced Strategy vs. Global Real Estate | Balanced Strategy vs. Global Real Estate |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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