| ECCX Stock | | | USD 24.79 0.09 0.36% |
The current 90-days correlation between Eagle Point Credit and CMS Energy Corp is 0.14 (i.e., Average diversification). The correlation of Eagle Point is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.
Eagle Point Correlation With Market
Significant diversification
The correlation between Eagle Point Credit and DJI is 0.06 (i.e., Significant diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and DJI in the same portfolio, assuming nothing else is changed.
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Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Eagle Point Credit. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
signals in main economic indicators.