Correlation Between Eagle Pointome and XAI Octagon

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

By analyzing existing cross correlation between Eagle Pointome and XAI Octagon Floating, you can compare the effects of market volatilities on Eagle Pointome and XAI Octagon 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 Pointome with a short position of XAI Octagon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pointome and XAI Octagon.

Diversification Opportunities for Eagle Pointome and XAI Octagon

0.33

Correlation Coefficient

Eagle Pointome  XAI Octagon

Weak diversification

The 3 months correlation between Eagle and XAI is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pointome and XAI Octagon Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XAI Octagon Floating and Eagle Pointome 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 Pointome are associated (or correlated) with XAI Octagon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XAI Octagon Floating has no effect on the direction of Eagle Pointome i.e., Eagle Pointome and XAI Octagon go up and down completely randomly.

Pair Corralation between Eagle Pointome and XAI Octagon

Considering the 90-day investment horizon Eagle Pointome is expected to generate 1.03 times more return on investment than XAI Octagon. However, Eagle Pointome is 1.03 times more volatile than XAI Octagon Floating. It trades about 0.09 of its potential returns per unit of risk. XAI Octagon Floating is currently generating about 0.07 per unit of risk. If you would invest  1,037  in Eagle Pointome on September 13, 2024 and sell it today you would earn a total of  521.00  from holding Eagle Pointome or generate 50.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	99.8%
Values	Daily Returns

Eagle Pointome  vs.  XAI Octagon Floating

Eagle Pointome

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Pointome are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward indicators, Eagle Pointome is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

XAI Octagon Floating

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in XAI Octagon Floating are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, XAI Octagon is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Eagle Pointome and XAI Octagon

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

The idea behind Eagle Pointome and XAI Octagon Floating 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.