Correlation Between Eagle Point and Blackrock

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

Specify exactly 2 symbols:

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

Diversification Opportunities for Eagle Point and Blackrock

-0.27
  Correlation Coefficient
Eagle Point Credit
Blackrock

Very good diversification

The 3 months correlation between Eagle and Blackrock is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Blackrock in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Blackrock and Eagle Point 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 Point Credit are associated (or correlated) with Blackrock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock has no effect on the direction of Eagle Point i.e., Eagle Point and Blackrock go up and down completely randomly.

Pair Corralation between Eagle Point and Blackrock

Given the investment horizon of 90 days Eagle Point Credit is expected to generate 0.24 times more return on investment than Blackrock. However, Eagle Point Credit is 4.24 times less risky than Blackrock. It trades about 0.06 of its potential returns per unit of risk. Blackrock is currently generating about -0.05 per unit of risk. If you would invest  2,501  in Eagle Point Credit on October 18, 2021 and sell it today you would earn a total of  27.00  from holding Eagle Point Credit or generate 1.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Eagle Point Credit  vs.  Blackrock

 Performance (%) 
      Timeline 
Eagle Point Credit 
Eagle Performance
4 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Eagle Point Credit are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Eagle Point is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Eagle Price Channel

Blackrock 
Blackrock Performance
0 of 100
Over the last 90 days Blackrock has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Blackrock is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Blackrock Price Channel

Eagle Point and Blackrock Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Eagle Point and Blackrock

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

Blackrock

Pair trading matchups for Blackrock

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Complementary Tools

Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Go