Correlation Between Hartford Municipal and First Eagle
Can any of the company-specific risk be diversified away by investing in both Hartford Municipal 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 Municipal and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hartford Municipal Income and First Eagle Global, you can compare the effects of market volatilities on Hartford Municipal 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 Municipal with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hartford Municipal and First Eagle.
Diversification Opportunities for Hartford Municipal and First Eagle
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hartford and First is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hartford Municipal Income and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global and Hartford Municipal 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 Hartford Municipal Income 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 Global has no effect on the direction of Hartford Municipal i.e., Hartford Municipal and First Eagle go up and down completely randomly.
Pair Corralation between Hartford Municipal and First Eagle
Assuming the 90 days horizon Hartford Municipal is expected to generate 28.18 times less return on investment than First Eagle. But when comparing it to its historical volatility, Hartford Municipal Income is 2.49 times less risky than First Eagle. It trades about 0.03 of its potential returns per unit of risk. First Eagle Global is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 1,302 in First Eagle Global on November 3, 2024 and sell it today you would earn a total of 38.00 from holding First Eagle Global or generate 2.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hartford Municipal Income vs. First Eagle Global
Performance |
| Timeline |
| Hartford Municipal Income |
| First Eagle Global |
Hartford Municipal and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hartford Municipal and First Eagle
The main advantage of trading using opposite Hartford Municipal and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hartford Municipal 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 Municipal vs. Blrc Sgy Mnp | Hartford Municipal vs. T Rowe Price | Hartford Municipal vs. Rationalpier 88 Convertible | Hartford Municipal vs. Bbh Intermediate Municipal |
| First Eagle vs. City National Rochdale | First Eagle vs. Tiaa Cref High Yield | First Eagle vs. Payden High Income | First Eagle vs. Strategic Advisers Income |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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