Correlation Between Bbh Intermediate and First Eagle
Can any of the company-specific risk be diversified away by investing in both Bbh Intermediate 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 Bbh Intermediate and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bbh Intermediate Municipal and First Eagle Small, you can compare the effects of market volatilities on Bbh Intermediate 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 Bbh Intermediate with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bbh Intermediate and First Eagle.
Diversification Opportunities for Bbh Intermediate and First Eagle
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bbh and First is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Bbh Intermediate Municipal and First Eagle Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Small and Bbh Intermediate 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 Bbh Intermediate Municipal 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 Small has no effect on the direction of Bbh Intermediate i.e., Bbh Intermediate and First Eagle go up and down completely randomly.
Pair Corralation between Bbh Intermediate and First Eagle
Assuming the 90 days horizon Bbh Intermediate is expected to generate 1.14 times less return on investment than First Eagle. But when comparing it to its historical volatility, Bbh Intermediate Municipal is 7.65 times less risky than First Eagle. It trades about 0.34 of its potential returns per unit of risk. First Eagle Small is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,099 in First Eagle Small on September 13, 2024 and sell it today you would earn a total of 9.00 from holding First Eagle Small or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bbh Intermediate Municipal vs. First Eagle Small
Performance |
| Timeline |
| Bbh Intermediate Mun |
| First Eagle Small |
Bbh Intermediate and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bbh Intermediate and First Eagle
The main advantage of trading using opposite Bbh Intermediate and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bbh Intermediate 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.| Bbh Intermediate vs. Qs Large Cap | Bbh Intermediate vs. Dunham Large Cap | Bbh Intermediate vs. M Large Cap | Bbh Intermediate vs. American Mutual Fund |
| First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Fund |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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