Correlation Between First Eagle and Hewitt Money
Can any of the company-specific risk be diversified away by investing in both First Eagle and Hewitt Money 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 First Eagle and Hewitt Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Fund and Hewitt Money Market, you can compare the effects of market volatilities on First Eagle and Hewitt Money 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 First Eagle with a short position of Hewitt Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Hewitt Money.
Diversification Opportunities for First Eagle and Hewitt Money
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Hewitt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Fund and Hewitt Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hewitt Money Market and First Eagle 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 First Eagle Fund are associated (or correlated) with Hewitt Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hewitt Money Market has no effect on the direction of First Eagle i.e., First Eagle and Hewitt Money go up and down completely randomly.
Pair Corralation between First Eagle and Hewitt Money
Assuming the 90 days horizon First Eagle Fund is expected to generate 3.92 times more return on investment than Hewitt Money. However, First Eagle is 3.92 times more volatile than Hewitt Money Market. It trades about 0.1 of its potential returns per unit of risk. Hewitt Money Market is currently generating about 0.07 per unit of risk. If you would invest 2,415 in First Eagle Fund on September 12, 2024 and sell it today you would earn a total of 414.00 from holding First Eagle Fund or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.8% |
| Values | Daily Returns |
First Eagle Fund vs. Hewitt Money Market
Performance |
| Timeline |
| First Eagle Fund |
| Hewitt Money Market |
First Eagle and Hewitt Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Hewitt Money
The main advantage of trading using opposite First Eagle and Hewitt Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Hewitt Money 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 Hewitt Money will offset losses from the drop in Hewitt Money's long position.| First Eagle vs. Hewitt Money Market | First Eagle vs. Chestnut Street Exchange | First Eagle vs. Money Market Obligations | First Eagle vs. Cref Money Market |
| Hewitt Money vs. Vanguard Total Stock | Hewitt Money vs. Vanguard 500 Index | Hewitt Money vs. Vanguard Total Stock | Hewitt Money vs. Vanguard Total Stock |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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