Correlation Between Eagle Mlp and Calvert Emerging

Can any of the company-specific risk be diversified away by investing in both Eagle Mlp and Calvert Emerging 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 Calvert Emerging 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 Calvert Emerging Markets, you can compare the effects of market volatilities on Eagle Mlp and Calvert Emerging 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 Calvert Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mlp and Calvert Emerging.

Diversification Opportunities for Eagle Mlp and Calvert Emerging

0.42

Correlation Coefficient

Eagle Mlp  Calvert Emerging

Very weak diversification

The @@bw1eo months correlation between Eagle and Calvert is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mlp Strategy and Calvert Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Emerging Markets 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 Calvert Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Emerging Markets has no effect on the direction of Eagle Mlp i.e., Eagle Mlp and Calvert Emerging go up and down completely randomly.

Pair Corralation between Eagle Mlp and Calvert Emerging

Assuming the 90 days horizon Eagle Mlp Strategy is expected to generate 1.11 times more return on investment than Calvert Emerging. However, Eagle Mlp is 1.11 times more volatile than Calvert Emerging Markets. It trades about 0.12 of its potential returns per unit of risk. Calvert Emerging Markets is currently generating about 0.08 per unit of risk. If you would invest  655.00  in Eagle Mlp Strategy on February 3, 2024 and sell it today you would earn a total of  199.00  from holding Eagle Mlp Strategy or generate 30.38% return on investment over 90 days.

Time Period	@@bw1EO Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	93.57%
Values	Daily Returns

Eagle Mlp Strategy  vs.  Calvert Emerging Markets

Eagle Mlp Strategy

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days Eagle Mlp Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Eagle Mlp is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Emerging Markets

Risk-Adjusted Performance

0 of 100

Modest

Over the last 90 days Calvert Emerging Markets has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Calvert Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Eagle Mlp and Calvert Emerging

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

The idea behind Eagle Mlp Strategy and Calvert Emerging Markets 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.