Correlation Between Calvert Global and First Eagle
Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Energy and First Eagle Global, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and First Eagle.
Diversification Opportunities for Calvert Global and First Eagle
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and First is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Energy and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global and Calvert Global 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 Calvert Global Energy 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 Global has no effect on the direction of Calvert Global i.e., Calvert Global and First Eagle go up and down completely randomly.
Pair Corralation between Calvert Global and First Eagle
Assuming the 90 days horizon Calvert Global is expected to generate 2.58 times less return on investment than First Eagle. In addition to that, Calvert Global is 2.44 times more volatile than First Eagle Global. It trades about 0.02 of its total potential returns per unit of risk. First Eagle Global is currently generating about 0.12 per unit of volatility. If you would invest 1,225 in First Eagle Global on August 25, 2024 and sell it today you would earn a total of 162.00 from holding First Eagle Global or generate 13.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Global Energy vs. First Eagle Global
Performance |
| Timeline |
| Calvert Global Energy |
| First Eagle Global |
Calvert Global and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Global and First Eagle
The main advantage of trading using opposite Calvert Global and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.| Calvert Global vs. Quantitative U S | Calvert Global vs. Fisher Large Cap | Calvert Global vs. T Rowe Price | Calvert Global vs. Knights Of Umbus |
| First Eagle vs. Tortoise Energy Independence | First Eagle vs. Fidelity Advisor Energy | First Eagle vs. Firsthand Alternative Energy | First Eagle vs. Calvert Global Energy |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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