Correlation Between Monteagle Enhanced and Vanguard Energy

Can any of the company-specific risk be diversified away by investing in both Monteagle Enhanced and Vanguard Energy 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 Monteagle Enhanced and Vanguard Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Monteagle Enhanced Equity and Vanguard Energy Index, you can compare the effects of market volatilities on Monteagle Enhanced and Vanguard Energy 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 Monteagle Enhanced with a short position of Vanguard Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monteagle Enhanced and Vanguard Energy.

Diversification Opportunities for Monteagle Enhanced and Vanguard Energy

0.66

Correlation Coefficient

Monteagle Enhanced  Vanguard Energy

Poor diversification

The 3 months correlation between Monteagle and Vanguard is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Monteagle Enhanced Equity and Vanguard Energy Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Energy Index and Monteagle Enhanced 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 Monteagle Enhanced Equity are associated (or correlated) with Vanguard Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Energy Index has no effect on the direction of Monteagle Enhanced i.e., Monteagle Enhanced and Vanguard Energy go up and down completely randomly.

Pair Corralation between Monteagle Enhanced and Vanguard Energy

Assuming the 90 days horizon Monteagle Enhanced Equity is expected to generate 0.64 times more return on investment than Vanguard Energy. However, Monteagle Enhanced Equity is 1.57 times less risky than Vanguard Energy. It trades about 0.19 of its potential returns per unit of risk. Vanguard Energy Index is currently generating about 0.07 per unit of risk. If you would invest  959.00  in Monteagle Enhanced Equity on August 4, 2025 and sell it today you would earn a total of  77.00  from holding Monteagle Enhanced Equity or generate 8.03% return on investment over 90 days.

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

Monteagle Enhanced Equity  vs.  Vanguard Energy Index

Monteagle Enhanced Equity

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Monteagle Enhanced Equity are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Monteagle Enhanced may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Vanguard Energy Index

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Energy Index are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vanguard Energy is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Monteagle Enhanced and Vanguard Energy

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

The idea behind Monteagle Enhanced Equity and Vanguard Energy Index 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.