Correlation Between First Eagle and Calvert Global
Can any of the company-specific risk be diversified away by investing in both First Eagle and Calvert Global 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 Calvert Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Global and Calvert Global Energy, you can compare the effects of market volatilities on First Eagle and Calvert Global 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Calvert Global.
Diversification Opportunities for First Eagle and Calvert Global
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Calvert is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Global are associated (or correlated) with Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of First Eagle i.e., First Eagle and Calvert Global go up and down completely randomly.
Pair Corralation between First Eagle and Calvert Global
Assuming the 90 days horizon First Eagle Global is expected to generate 0.41 times more return on investment than Calvert Global. However, First Eagle Global is 2.42 times less risky than Calvert Global. It trades about 0.08 of its potential returns per unit of risk. Calvert Global Energy is currently generating about 0.0 per unit of risk. If you would invest 1,161 in First Eagle Global on August 30, 2024 and sell it today you would earn a total of 216.00 from holding First Eagle Global or generate 18.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Calvert Global Energy
Performance |
| Timeline |
| First Eagle Global |
| Calvert Global Energy |
First Eagle and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Calvert Global
The main advantage of trading using opposite First Eagle and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| First Eagle vs. Gamco Natural Resources | First Eagle vs. Dreyfus Natural Resources | First Eagle vs. Tortoise Energy Independence | First Eagle vs. Icon Natural Resources |
| Calvert Global vs. Firsthand Alternative Energy | Calvert Global vs. Portfolio 21 Global | Calvert Global vs. HUMANA INC | Calvert Global vs. Aquagold International |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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