Correlation Between Artisan Emerging and First Eagle
Can any of the company-specific risk be diversified away by investing in both Artisan Emerging and First Eagle 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 Artisan Emerging and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artisan Emerging Markets and First Eagle Value, you can compare the effects of market volatilities on Artisan Emerging and First Eagle 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 Artisan Emerging with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and First Eagle.
Diversification Opportunities for Artisan Emerging and First Eagle
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Artisan and First is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and First Eagle Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Value and Artisan Emerging 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 Artisan Emerging Markets are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Value has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and First Eagle go up and down completely randomly.
Pair Corralation between Artisan Emerging and First Eagle
Assuming the 90 days horizon Artisan Emerging is expected to generate 1.37 times less return on investment than First Eagle. But when comparing it to its historical volatility, Artisan Emerging Markets is 2.81 times less risky than First Eagle. It trades about 0.16 of its potential returns per unit of risk. First Eagle Value is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,682 in First Eagle Value on September 4, 2024 and sell it today you would earn a total of 470.00 from holding First Eagle Value or generate 27.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Artisan Emerging Markets vs. First Eagle Value
Performance |
| Timeline |
| Artisan Emerging Markets |
| First Eagle Value |
Artisan Emerging and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artisan Emerging and First Eagle
The main advantage of trading using opposite Artisan Emerging and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan Emerging position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Artisan Emerging vs. Artisan Value Income | Artisan Emerging vs. Artisan Thematic Fund | Artisan Emerging vs. Artisan Small Cap | Artisan Emerging vs. Artisan Floating Rate |
| First Eagle vs. Oil Gas Ultrasector | First Eagle vs. World Energy Fund | First Eagle vs. Adams Natural Resources | First Eagle vs. Hennessy Bp Energy |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |