Correlation Between Hartford Emerging and First Eagle
Can any of the company-specific risk be diversified away by investing in both Hartford 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 Hartford 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 The Hartford Emerging and First Eagle Value, you can compare the effects of market volatilities on Hartford 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 Hartford Emerging with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Emerging and First Eagle.
Diversification Opportunities for Hartford Emerging and First Eagle
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hartford and First is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Emerging 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 Hartford 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 The Hartford Emerging 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 Hartford Emerging i.e., Hartford Emerging and First Eagle go up and down completely randomly.
Pair Corralation between Hartford Emerging and First Eagle
Assuming the 90 days horizon The Hartford Emerging is expected to under-perform the First Eagle. But the mutual fund apears to be less risky and, when comparing its historical volatility, The Hartford Emerging is 2.26 times less risky than First Eagle. The mutual fund trades about -0.12 of its potential returns per unit of risk. The First Eagle Value is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,073 in First Eagle Value on September 12, 2024 and sell it today you would lose (61.00) from holding First Eagle Value or give up 2.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Emerging vs. First Eagle Value
Performance |
| Timeline |
| Hartford Emerging |
| First Eagle Value |
Hartford Emerging and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Emerging and First Eagle
The main advantage of trading using opposite Hartford Emerging and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford 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.| Hartford Emerging vs. Fpa Queens Road | Hartford Emerging vs. Ab Small Cap | Hartford Emerging vs. Omni Small Cap Value | Hartford Emerging vs. Boston Partners Small |
| First Eagle vs. Income Fund Of | First Eagle vs. Income Fund Of | First Eagle vs. Income Fund Of | First Eagle vs. Income Fund Of |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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