Correlation Between First Eagle and Sprott Gold
Can any of the company-specific risk be diversified away by investing in both First Eagle and Sprott Gold 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 First Eagle and Sprott Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Gold and Sprott Gold Equity, you can compare the effects of market volatilities on First Eagle and Sprott Gold 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 First Eagle with a short position of Sprott Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Sprott Gold.
Diversification Opportunities for First Eagle and Sprott Gold
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Sprott is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Sprott Gold Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Gold Equity and First Eagle 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 First Eagle Gold are associated (or correlated) with Sprott Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Gold Equity has no effect on the direction of First Eagle i.e., First Eagle and Sprott Gold go up and down completely randomly.
Pair Corralation between First Eagle and Sprott Gold
If you would invest 0.00 in First Eagle Gold on August 30, 2024 and sell it today you would earn a total of 0.00 from holding First Eagle Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
First Eagle Gold vs. Sprott Gold Equity
Performance |
| Timeline |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sprott Gold Equity |
First Eagle and Sprott Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Sprott Gold
The main advantage of trading using opposite First Eagle and Sprott Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Sprott Gold 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 Sprott Gold will offset losses from the drop in Sprott Gold's long position.| First Eagle vs. Multisector Bond Sma | First Eagle vs. Calamos Dynamic Convertible | First Eagle vs. Icon Bond Fund | First Eagle vs. T Rowe Price |
| Sprott Gold vs. Sprott Junior Gold | Sprott Gold vs. Sprott Gold Miners | Sprott Gold vs. Europac Gold Fund | Sprott Gold vs. US Global GO |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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