Correlation Between Smead Value and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Smead Value and Eagle Mid 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 Smead Value and Eagle Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smead Value Fund and Eagle Mid Cap, you can compare the effects of market volatilities on Smead Value and Eagle Mid 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 Smead Value with a short position of Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smead Value and Eagle Mid.
Diversification Opportunities for Smead Value and Eagle Mid
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Smead and Eagle is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Smead Value Fund and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap and Smead Value 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 Smead Value Fund are associated (or correlated) with Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Smead Value i.e., Smead Value and Eagle Mid go up and down completely randomly.
Pair Corralation between Smead Value and Eagle Mid
Assuming the 90 days horizon Smead Value is expected to generate 2.27 times less return on investment than Eagle Mid. But when comparing it to its historical volatility, Smead Value Fund is 1.28 times less risky than Eagle Mid. It trades about 0.03 of its potential returns per unit of risk. Eagle Mid Cap is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,706 in Eagle Mid Cap on October 8, 2025 and sell it today you would earn a total of 1,846 from holding Eagle Mid Cap or generate 39.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smead Value Fund vs. Eagle Mid Cap
Performance |
| Timeline |
| Smead Value Fund |
| Eagle Mid Cap |
Smead Value and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smead Value and Eagle Mid
The main advantage of trading using opposite Smead Value and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smead Value position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.| Smead Value vs. Tweedy Browne Global | Smead Value vs. T Rowe Price | Smead Value vs. Clearbridge Aggressive Growth | Smead Value vs. Blackrock Advantage Small |
| Eagle Mid vs. T Rowe Price | Eagle Mid vs. The Hartford Midcap | Eagle Mid vs. Clearbridge Aggressive Growth | Eagle Mid vs. Blackrock Advantage Small |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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