Correlation Between Eagle Mlp and Philotimo Focused

Can any of the company-specific risk be diversified away by investing in both Eagle Mlp and Philotimo Focused 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 Mlp and Philotimo Focused into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eagle Mlp Strategy and Philotimo Focused Growth, you can compare the effects of market volatilities on Eagle Mlp and Philotimo Focused 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 Mlp with a short position of Philotimo Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Philotimo Focused.

Diversification Opportunities for Eagle Mlp and Philotimo Focused

0.69

Correlation Coefficient

Eagle Mlp  Philotimo Focused

Poor diversification

The 3 months correlation between Eagle and Philotimo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Philotimo Focused Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Philotimo Focused Growth and Eagle Mlp 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 Mlp Strategy are associated (or correlated) with Philotimo Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Philotimo Focused Growth has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Philotimo Focused go up and down completely randomly.

Pair Corralation between Eagle Mlp and Philotimo Focused

Assuming the 90 days horizon Eagle Mlp is expected to generate 2.14 times less return on investment than Philotimo Focused. But when comparing it to its historical volatility, Eagle Mlp Strategy is 1.36 times less risky than Philotimo Focused. It trades about 0.15 of its potential returns per unit of risk. Philotimo Focused Growth is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  882.00  in Philotimo Focused Growth on September 30, 2024 and sell it today you would earn a total of  212.00  from holding Philotimo Focused Growth or generate 24.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Eagle Mlp Strategy  vs.  Philotimo Focused Growth

Eagle Mlp Strategy

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Mlp Strategy are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Eagle Mlp may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Philotimo Focused Growth

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Philotimo Focused Growth are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Philotimo Focused showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eagle Mlp and Philotimo Focused

The main advantage of trading using opposite Eagle Mlp and Philotimo Focused positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mlp position performs unexpectedly, Philotimo Focused 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 Philotimo Focused will offset losses from the drop in Philotimo Focused's long position.

The idea behind Eagle Mlp Strategy and Philotimo Focused Growth 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.

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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.