Correlation Between Eagle Growth and Emerging Markets

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

By analyzing existing cross correlation between Eagle Growth Income and Emerging Markets Fund, you can compare the effects of market volatilities on Eagle Growth and Emerging Markets 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 Growth with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Growth and Emerging Markets.

Diversification Opportunities for Eagle Growth and Emerging Markets

0.93

Correlation Coefficient

Eagle Growth  Emerging Markets

Almost no diversification

The 3 months correlation between Eagle and Emerging is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Growth Income and Emerging Markets Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets and Eagle Growth 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 Growth Income are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets has no effect on the direction of Eagle Growth i.e., Eagle Growth and Emerging Markets go up and down completely randomly.

Pair Corralation between Eagle Growth and Emerging Markets

Assuming the 90 days horizon Eagle Growth Income is expected to generate 0.83 times more return on investment than Emerging Markets. However, Eagle Growth Income is 1.21 times less risky than Emerging Markets. It trades about 0.24 of its potential returns per unit of risk. Emerging Markets Fund is currently generating about 0.13 per unit of risk. If you would invest  1,836  in Eagle Growth Income on May 4, 2025 and sell it today you would earn a total of  182.00  from holding Eagle Growth Income or generate 9.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.41%
Values	Daily Returns

Eagle Growth Income  vs.  Emerging Markets Fund

Eagle Growth Income

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Growth Income are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Eagle Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Emerging Markets

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Emerging Markets Fund are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Emerging Markets may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Eagle Growth and Emerging Markets

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

The idea behind Eagle Growth Income and Emerging Markets Fund 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.