Correlation Between Strategic Allocation: and First Eagle
Can any of the company-specific risk be diversified away by investing in both Strategic Allocation: 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 Strategic Allocation: and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Allocation Aggressive and First Eagle Fund, you can compare the effects of market volatilities on Strategic Allocation: 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 Strategic Allocation: with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Allocation: and First Eagle.
Diversification Opportunities for Strategic Allocation: and First Eagle
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Strategic and First is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Allocation Aggressiv 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 Strategic Allocation: 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 Strategic Allocation Aggressive 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 Strategic Allocation: i.e., Strategic Allocation: and First Eagle go up and down completely randomly.
Pair Corralation between Strategic Allocation: and First Eagle
Assuming the 90 days horizon Strategic Allocation: is expected to generate 1.39 times less return on investment than First Eagle. But when comparing it to its historical volatility, Strategic Allocation Aggressive is 1.19 times less risky than First Eagle. It trades about 0.07 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,200 in First Eagle Fund on September 3, 2024 and sell it today you would earn a total of 775.00 from holding First Eagle Fund or generate 35.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Strategic Allocation Aggressiv vs. First Eagle Fund
Performance |
| Timeline |
| Strategic Allocation: |
| First Eagle Fund |
Strategic Allocation: and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Allocation: and First Eagle
The main advantage of trading using opposite Strategic Allocation: and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Allocation: 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.| Strategic Allocation: vs. Wasatch Small Cap | Strategic Allocation: vs. Pgim Jennison Diversified | Strategic Allocation: vs. Small Cap Stock | Strategic Allocation: vs. Massmutual Premier Diversified |
| First Eagle vs. Vanguard Total Stock | First Eagle vs. Vanguard 500 Index | First Eagle vs. Vanguard Total Stock | First Eagle vs. Vanguard Total Stock |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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