Correlation Between Hewitt Money and First Eagle
Can any of the company-specific risk be diversified away by investing in both Hewitt Money 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 Hewitt Money and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hewitt Money Market and First Eagle Fund, you can compare the effects of market volatilities on Hewitt Money 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 Hewitt Money with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hewitt Money and First Eagle.
Diversification Opportunities for Hewitt Money and First Eagle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hewitt and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hewitt Money Market and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund and Hewitt Money 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 Hewitt Money Market 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 Fund has no effect on the direction of Hewitt Money i.e., Hewitt Money and First Eagle go up and down completely randomly.
Pair Corralation between Hewitt Money and First Eagle
Assuming the 90 days horizon Hewitt Money is expected to generate 2.82 times less return on investment than First Eagle. In addition to that, Hewitt Money is 1.29 times more volatile than First Eagle Fund. It trades about 0.02 of its total potential returns per unit of risk. First Eagle Fund is currently generating about 0.08 per unit of volatility. If you would invest 2,118 in First Eagle Fund on September 12, 2024 and sell it today you would earn a total of 711.00 from holding First Eagle Fund or generate 33.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Hewitt Money Market vs. First Eagle Fund
Performance |
| Timeline |
| Hewitt Money Market |
| First Eagle Fund |
Hewitt Money and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hewitt Money and First Eagle
The main advantage of trading using opposite Hewitt Money and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hewitt Money 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.| Hewitt Money vs. Vanguard Total Stock | Hewitt Money vs. Vanguard 500 Index | Hewitt Money vs. Vanguard Total Stock | Hewitt Money vs. Vanguard Total Stock |
| First Eagle vs. Hewitt Money Market | First Eagle vs. Chestnut Street Exchange | First Eagle vs. Money Market Obligations | First Eagle vs. Cref Money Market |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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