Correlation Between Eagle Pointome and Highland Opportunities

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

By analyzing existing cross correlation between Eagle Pointome and Highland Opportunities And, you can compare the effects of market volatilities on Eagle Pointome and Highland Opportunities 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 Highland Opportunities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pointome and Highland Opportunities.

Diversification Opportunities for Eagle Pointome and Highland Opportunities

-0.39

Correlation Coefficient

Eagle Pointome  Highland Opportunities

Very good diversification

The 3 months correlation between Eagle and Highland is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pointome and Highland Opportunities And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Opportunities 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 Highland Opportunities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Opportunities has no effect on the direction of Eagle Pointome i.e., Eagle Pointome and Highland Opportunities go up and down completely randomly.

Pair Corralation between Eagle Pointome and Highland Opportunities

Considering the 90-day investment horizon Eagle Pointome is expected to under-perform the Highland Opportunities. In addition to that, Eagle Pointome is 2.17 times more volatile than Highland Opportunities And. It trades about -0.06 of its total potential returns per unit of risk. Highland Opportunities And is currently generating about 0.12 per unit of volatility. If you would invest  495.00  in Highland Opportunities And on May 6, 2025 and sell it today you would earn a total of  33.00  from holding Highland Opportunities And or generate 6.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Eagle Pointome  vs.  Highland Opportunities And

Eagle Pointome

Risk-Adjusted Performance

Very Weak

Over the last 90 days Eagle Pointome has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Highland Opportunities

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Highland Opportunities And are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak basic indicators, Highland Opportunities may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Eagle Pointome and Highland Opportunities

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

The idea behind Eagle Pointome and Highland Opportunities And 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.