Correlation Between Jhancock Disciplined and First Eagle
Can any of the company-specific risk be diversified away by investing in both Jhancock Disciplined 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 Jhancock Disciplined and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jhancock Disciplined Value and First Eagle Fund, you can compare the effects of market volatilities on Jhancock Disciplined 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 Jhancock Disciplined with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Disciplined and First Eagle.
Diversification Opportunities for Jhancock Disciplined and First Eagle
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jhancock and First is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock Disciplined Value 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 Jhancock Disciplined 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 Jhancock Disciplined Value 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 Jhancock Disciplined i.e., Jhancock Disciplined and First Eagle go up and down completely randomly.
Pair Corralation between Jhancock Disciplined and First Eagle
Assuming the 90 days horizon Jhancock Disciplined Value is expected to under-perform the First Eagle. In addition to that, Jhancock Disciplined is 1.18 times more volatile than First Eagle Fund. It trades about -0.07 of its total potential returns per unit of risk. First Eagle Fund is currently generating about -0.06 per unit of volatility. If you would invest 2,739 in First Eagle Fund on January 13, 2025 and sell it today you would lose (92.00) from holding First Eagle Fund or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jhancock Disciplined Value vs. First Eagle Fund
Performance |
| Timeline |
| Jhancock Disciplined |
| First Eagle Fund |
Jhancock Disciplined and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jhancock Disciplined and First Eagle
The main advantage of trading using opposite Jhancock Disciplined and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock Disciplined 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.| Jhancock Disciplined vs. Ab Centrated Growth | Jhancock Disciplined vs. Eip Growth And | Jhancock Disciplined vs. Small Pany Growth | Jhancock Disciplined vs. Eagle Growth Income |
| First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Fund |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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