Correlation Between Tfa Alphagen and Eagle Growth

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

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

Diversification Opportunities for Tfa Alphagen and Eagle Growth

0.99

Correlation Coefficient

Tfa Alphagen  Eagle Growth

No risk reduction

The 3 months correlation between Tfa and Eagle is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income and Tfa Alphagen 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 Tfa Alphagen Growth are associated (or correlated) with Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Tfa Alphagen i.e., Tfa Alphagen and Eagle Growth go up and down completely randomly.

Pair Corralation between Tfa Alphagen and Eagle Growth

Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 1.21 times more return on investment than Eagle Growth. However, Tfa Alphagen is 1.21 times more volatile than Eagle Growth Income. It trades about 0.26 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.22 per unit of risk. If you would invest  1,034  in Tfa Alphagen Growth on May 6, 2025 and sell it today you would earn a total of  141.00  from holding Tfa Alphagen Growth or generate 13.64% return on investment over 90 days.

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

Tfa Alphagen Growth  vs.  Eagle Growth Income

Tfa Alphagen Growth

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Tfa Alphagen Growth are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Tfa Alphagen showed solid returns over the last few months and may actually be approaching a breakup point.

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 17 (%) 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.

Pair Trading with Tfa Alphagen and Eagle Growth

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

The idea behind Tfa Alphagen Growth and Eagle Growth Income 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.