Correlation Between Eic Value and Curasset Capital

Can any of the company-specific risk be diversified away by investing in both Eic Value and Curasset Capital 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 Eic Value and Curasset Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eic Value Fund and Curasset Capital Management, you can compare the effects of market volatilities on Eic Value and Curasset Capital 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 Eic Value with a short position of Curasset Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eic Value and Curasset Capital.

Diversification Opportunities for Eic Value and Curasset Capital

0.0

Correlation Coefficient

Eic Value  Curasset Capital

Pay attention - limited upside

The 3 months correlation between Eic and Curasset is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eic Value Fund and Curasset Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Curasset Capital Man and Eic Value 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 Eic Value Fund are associated (or correlated) with Curasset Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Curasset Capital Man has no effect on the direction of Eic Value i.e., Eic Value and Curasset Capital go up and down completely randomly.

Pair Corralation between Eic Value and Curasset Capital

If you would invest  1,748  in Eic Value Fund on February 3, 2025 and sell it today you would earn a total of  27.00  from holding Eic Value Fund or generate 1.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Eic Value Fund  vs.  Curasset Capital Management

Eic Value Fund

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eic Value Fund are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Eic Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Curasset Capital Man

Risk-Adjusted Performance

Insignificant

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

Pair Trading with Eic Value and Curasset Capital

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

The idea behind Eic Value Fund and Curasset Capital Management 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.