Correlation Between First Eagle and Pgim High
Can any of the company-specific risk be diversified away by investing in both First Eagle and Pgim High 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 First Eagle and Pgim High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle High and Pgim High Yield, you can compare the effects of market volatilities on First Eagle and Pgim High 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 First Eagle with a short position of Pgim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Pgim High.
Diversification Opportunities for First Eagle and Pgim High
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Pgim is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle High and Pgim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim High Yield and First Eagle 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 First Eagle High are associated (or correlated) with Pgim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim High Yield has no effect on the direction of First Eagle i.e., First Eagle and Pgim High go up and down completely randomly.
Pair Corralation between First Eagle and Pgim High
Assuming the 90 days horizon First Eagle High is expected to generate 0.96 times more return on investment than Pgim High. However, First Eagle High is 1.05 times less risky than Pgim High. It trades about -0.13 of its potential returns per unit of risk. Pgim High Yield is currently generating about -0.22 per unit of risk. If you would invest 830.00 in First Eagle High on January 20, 2024 and sell it today you would lose (6.00) from holding First Eagle High or give up 0.72% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
First Eagle High vs. Pgim High Yield
Performance |
Timeline |
First Eagle High |
Pgim High Yield |
First Eagle and Pgim High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Eagle and Pgim High
The main advantage of trading using opposite First Eagle and Pgim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Pgim High 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 Pgim High will offset losses from the drop in Pgim High's long position.First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Fund |
Pgim High vs. Prudential Jennison International | Pgim High vs. Prudential Jennison International | Pgim High vs. Pgim Jennison International | Pgim High vs. Pgim Jennison International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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