Correlation Between First Eagle and Popular Capital
Can any of the company-specific risk be diversified away by investing in both First Eagle and Popular Capital 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 Popular Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Alternative and Popular Capital Trust, you can compare the effects of market volatilities on First Eagle and Popular Capital 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 Popular Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Popular Capital.
Diversification Opportunities for First Eagle and Popular Capital
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Popular is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Alternative and Popular Capital Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Popular Capital Trust 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 Alternative are associated (or correlated) with Popular Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Popular Capital Trust has no effect on the direction of First Eagle i.e., First Eagle and Popular Capital go up and down completely randomly.
Pair Corralation between First Eagle and Popular Capital
Given the investment horizon of 90 days First Eagle Alternative is expected to generate 0.59 times more return on investment than Popular Capital. However, First Eagle Alternative is 1.7 times less risky than Popular Capital. It trades about -0.02 of its potential returns per unit of risk. Popular Capital Trust is currently generating about -0.05 per unit of risk. If you would invest 2,455 in First Eagle Alternative on August 29, 2024 and sell it today you would lose (5.00) from holding First Eagle Alternative or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Alternative vs. Popular Capital Trust
Performance |
| Timeline |
| First Eagle Alternative |
| Popular Capital Trust |
First Eagle and Popular Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Popular Capital
The main advantage of trading using opposite First Eagle and Popular Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Popular Capital 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 Popular Capital will offset losses from the drop in Popular Capital's long position.| First Eagle vs. Doubleline Yield Opportunities | First Eagle vs. PIMCO Access Income | First Eagle vs. Blackrock Innovation Growth | First Eagle vs. Cohen Steers Tax Advantaged |
| Popular Capital vs. BFC Capital Trust | Popular Capital vs. Popular | Popular Capital vs. Oxford Lane Capital | Popular Capital vs. Wintrust Financial Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |