Correlation Between Sp Smallcap and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Sp Smallcap and Eagle Growth 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 Sp Smallcap and Eagle Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sp Smallcap Index and Eagle Growth Income, you can compare the effects of market volatilities on Sp Smallcap and Eagle Growth 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 Sp Smallcap with a short position of Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sp Smallcap and Eagle Growth.
Diversification Opportunities for Sp Smallcap and Eagle Growth
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SMLKX and Eagle is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sp Smallcap Index and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income and Sp Smallcap 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 Sp Smallcap Index are associated (or correlated) with Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Sp Smallcap i.e., Sp Smallcap and Eagle Growth go up and down completely randomly.
Pair Corralation between Sp Smallcap and Eagle Growth
Assuming the 90 days horizon Sp Smallcap Index is expected to generate 2.01 times more return on investment than Eagle Growth. However, Sp Smallcap is 2.01 times more volatile than Eagle Growth Income. It trades about 0.17 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.24 per unit of risk. If you would invest 1,895 in Sp Smallcap Index on June 1, 2025 and sell it today you would earn a total of 236.00 from holding Sp Smallcap Index or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Sp Smallcap Index vs. Eagle Growth Income
Performance |
| Timeline |
| Sp Smallcap Index |
| Eagle Growth Income |
Sp Smallcap and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sp Smallcap and Eagle Growth
The main advantage of trading using opposite Sp Smallcap and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sp Smallcap position performs unexpectedly, Eagle Growth 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Sp Smallcap vs. Ab Municipal Bond | Sp Smallcap vs. Ishares Municipal Bond | Sp Smallcap vs. John Hancock Municipal | Sp Smallcap vs. Bbh Intermediate Municipal |
| Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Carillon Chartwell Short | Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Carillon Chartwell Short |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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