Correlation Between Huber Capital and First Eagle
Can any of the company-specific risk be diversified away by investing in both Huber Capital 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 Huber Capital and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huber Capital Diversified and First Eagle Global, you can compare the effects of market volatilities on Huber Capital 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 Huber Capital with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huber Capital and First Eagle.
Diversification Opportunities for Huber Capital and First Eagle
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Huber and First is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Huber Capital Diversified 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 Huber Capital 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 Huber Capital Diversified 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 Huber Capital i.e., Huber Capital and First Eagle go up and down completely randomly.
Pair Corralation between Huber Capital and First Eagle
Assuming the 90 days horizon Huber Capital Diversified is expected to generate 2.43 times more return on investment than First Eagle. However, Huber Capital is 2.43 times more volatile than First Eagle Global. It trades about 0.07 of its potential returns per unit of risk. First Eagle Global is currently generating about -0.18 per unit of risk. If you would invest 2,446 in Huber Capital Diversified on September 13, 2024 and sell it today you would earn a total of 67.00 from holding Huber Capital Diversified or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huber Capital Diversified vs. First Eagle Global
Performance |
| Timeline |
| Huber Capital Diversified |
| First Eagle Global |
Huber Capital and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huber Capital and First Eagle
The main advantage of trading using opposite Huber Capital and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huber Capital 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.| Huber Capital vs. Ppm High Yield | Huber Capital vs. Calvert High Yield | Huber Capital vs. Western Asset High | Huber Capital vs. Siit High Yield |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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