Correlation Between Eagle Point and Thungela Resources
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Thungela Resources 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 Point and Thungela Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and Thungela Resources Limited, you can compare the effects of market volatilities on Eagle Point and Thungela Resources 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 Point with a short position of Thungela Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Thungela Resources.
Diversification Opportunities for Eagle Point and Thungela Resources
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and Thungela is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Thungela Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thungela Resources and Eagle Point 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 Point Credit are associated (or correlated) with Thungela Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thungela Resources has no effect on the direction of Eagle Point i.e., Eagle Point and Thungela Resources go up and down completely randomly.
Pair Corralation between Eagle Point and Thungela Resources
Considering the 90-day investment horizon Eagle Point is expected to generate 13.33 times less return on investment than Thungela Resources. But when comparing it to its historical volatility, Eagle Point Credit is 4.92 times less risky than Thungela Resources. It trades about 0.04 of its potential returns per unit of risk. Thungela Resources Limited is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 618.00 in Thungela Resources Limited on July 30, 2024 and sell it today you would earn a total of 117.00 from holding Thungela Resources Limited or generate 18.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 89.06% |
Values | Daily Returns |
Eagle Point Credit vs. Thungela Resources Limited
Performance |
Timeline |
Eagle Point Credit |
Thungela Resources |
Eagle Point and Thungela Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eagle Point and Thungela Resources
The main advantage of trading using opposite Eagle Point and Thungela Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Thungela Resources 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 Thungela Resources will offset losses from the drop in Thungela Resources' long position.Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
Thungela Resources vs. Alliance Resource Partners | Thungela Resources vs. SBM Offshore NV | Thungela Resources vs. Everi Holdings | Thungela Resources vs. Eagle Point Credit |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |