Correlation Between First Eagle and Needham Aggressive
Can any of the company-specific risk be diversified away by investing in both First Eagle and Needham Aggressive 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 Needham Aggressive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Fund and Needham Aggressive Growth, you can compare the effects of market volatilities on First Eagle and Needham Aggressive 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 Needham Aggressive. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Needham Aggressive.
Diversification Opportunities for First Eagle and Needham Aggressive
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between First and Needham is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Fund and Needham Aggressive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Needham Aggressive Growth 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 Fund are associated (or correlated) with Needham Aggressive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Needham Aggressive Growth has no effect on the direction of First Eagle i.e., First Eagle and Needham Aggressive go up and down completely randomly.
Pair Corralation between First Eagle and Needham Aggressive
Assuming the 90 days horizon First Eagle Fund is expected to under-perform the Needham Aggressive. But the mutual fund apears to be less risky and, when comparing its historical volatility, First Eagle Fund is 1.43 times less risky than Needham Aggressive. The mutual fund trades about -0.25 of its potential returns per unit of risk. The Needham Aggressive Growth is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,934 in Needham Aggressive Growth on September 13, 2024 and sell it today you would earn a total of 180.00 from holding Needham Aggressive Growth or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Fund vs. Needham Aggressive Growth
Performance |
| Timeline |
| First Eagle Fund |
| Needham Aggressive Growth |
First Eagle and Needham Aggressive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Needham Aggressive
The main advantage of trading using opposite First Eagle and Needham Aggressive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Needham Aggressive 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 Needham Aggressive will offset losses from the drop in Needham Aggressive's long position.| First Eagle vs. Needham Aggressive Growth | First Eagle vs. Chase Growth Fund | First Eagle vs. Qs Moderate Growth | First Eagle vs. Franklin Growth Opportunities |
| Needham Aggressive vs. Needham Aggressive Growth | Needham Aggressive vs. Needham Small Cap | Needham Aggressive vs. Ultramid Cap Profund Ultramid Cap | Needham Aggressive vs. Fidelity Advisor Semiconductors |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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