Correlation Between Doubleline Global and First Eagle
Can any of the company-specific risk be diversified away by investing in both Doubleline 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 Doubleline 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 Doubleline Global Bond and First Eagle Global, you can compare the effects of market volatilities on Doubleline 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 Doubleline Global with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubleline Global and First Eagle.
Diversification Opportunities for Doubleline Global and First Eagle
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Doubleline and FIRST is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Doubleline Global Bond 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 Doubleline 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 Doubleline Global Bond 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 Doubleline Global i.e., Doubleline Global and First Eagle go up and down completely randomly.
Pair Corralation between Doubleline Global and First Eagle
Assuming the 90 days horizon Doubleline Global is expected to generate 2.99 times less return on investment than First Eagle. But when comparing it to its historical volatility, Doubleline Global Bond is 1.12 times less risky than First Eagle. It trades about 0.04 of its potential returns per unit of risk. First Eagle Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,282 in First Eagle Global on September 3, 2024 and sell it today you would earn a total of 93.00 from holding First Eagle Global or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubleline Global Bond vs. First Eagle Global
Performance |
| Timeline |
| Doubleline Global Bond |
| First Eagle Global |
Doubleline Global and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubleline Global and First Eagle
The main advantage of trading using opposite Doubleline Global and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubleline 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.| Doubleline Global vs. Franklin Gold Precious | Doubleline Global vs. Precious Metals And | Doubleline Global vs. James Balanced Golden | Doubleline Global vs. Short Precious Metals |
| First Eagle vs. Doubleline Global Bond | First Eagle vs. Mirova Global Green | First Eagle vs. 361 Global Longshort | First Eagle vs. Dreyfusstandish Global Fixed |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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