Correlation Between Eagle Mid and Tweedy Browne

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Can any of the company-specific risk be diversified away by investing in both Eagle Mid and Tweedy Browne 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 Eagle Mid and Tweedy Browne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Mid Cap and Tweedy Browne Global, you can compare the effects of market volatilities on Eagle Mid and Tweedy Browne 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 Eagle Mid with a short position of Tweedy Browne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Mid and Tweedy Browne.

Diversification Opportunities for Eagle Mid and Tweedy Browne

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Eagle and Tweedy is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Mid Cap and Tweedy Browne Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tweedy Browne Global and Eagle Mid 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 Eagle Mid Cap are associated (or correlated) with Tweedy Browne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tweedy Browne Global has no effect on the direction of Eagle Mid i.e., Eagle Mid and Tweedy Browne go up and down completely randomly.

Pair Corralation between Eagle Mid and Tweedy Browne

Assuming the 90 days horizon Eagle Mid Cap is expected to under-perform the Tweedy Browne. But the mutual fund apears to be less risky and, when comparing its historical volatility, Eagle Mid Cap is 1.54 times less risky than Tweedy Browne. The mutual fund trades about -0.04 of its potential returns per unit of risk. The Tweedy Browne Global is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  2,458  in Tweedy Browne Global on October 8, 2025 and sell it today you would earn a total of  389.00  from holding Tweedy Browne Global or generate 15.83% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Eagle Mid Cap  vs.  Tweedy Browne Global

 Performance 
       Timeline  
Eagle Mid Cap 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Eagle Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Eagle Mid is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Tweedy Browne Global 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Tweedy Browne Global are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Tweedy Browne showed solid returns over the last few months and may actually be approaching a breakup point.

Eagle Mid and Tweedy Browne Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eagle Mid and Tweedy Browne

The main advantage of trading using opposite Eagle Mid and Tweedy Browne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Mid position performs unexpectedly, Tweedy Browne 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 Tweedy Browne will offset losses from the drop in Tweedy Browne's long position.
The idea behind Eagle Mid Cap and Tweedy Browne Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.

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