Correlation Between EnLink Midstream and Eagle Point
Can any of the company-specific risk be diversified away by investing in both EnLink Midstream and Eagle Point 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 EnLink Midstream and Eagle Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EnLink Midstream LLC and Eagle Point Credit, you can compare the effects of market volatilities on EnLink Midstream and Eagle Point 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 EnLink Midstream with a short position of Eagle Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of EnLink Midstream and Eagle Point.
Diversification Opportunities for EnLink Midstream and Eagle Point
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EnLink and Eagle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EnLink Midstream LLC and Eagle Point Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Point Credit and EnLink Midstream 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 EnLink Midstream LLC are associated (or correlated) with Eagle Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Point Credit has no effect on the direction of EnLink Midstream i.e., EnLink Midstream and Eagle Point go up and down completely randomly.
Pair Corralation between EnLink Midstream and Eagle Point
If you would invest 1,333 in EnLink Midstream LLC on January 26, 2024 and sell it today you would earn a total of 45.00 from holding EnLink Midstream LLC or generate 3.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
EnLink Midstream LLC vs. Eagle Point Credit
Performance |
Timeline |
EnLink Midstream LLC |
Eagle Point Credit |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EnLink Midstream and Eagle Point Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EnLink Midstream and Eagle Point
The main advantage of trading using opposite EnLink Midstream and Eagle Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EnLink Midstream position performs unexpectedly, Eagle Point 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 Point will offset losses from the drop in Eagle Point's long position.EnLink Midstream vs. Plains All American | EnLink Midstream vs. Hess Midstream Partners | EnLink Midstream vs. Western Midstream Partners | EnLink Midstream vs. Plains GP Holdings |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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