Correlation Between First Eagle and Balanced Fund
Can any of the company-specific risk be diversified away by investing in both First Eagle and Balanced Fund 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 Balanced Fund 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 Balanced Fund Investor, you can compare the effects of market volatilities on First Eagle and Balanced Fund 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 Balanced Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Balanced Fund.
Diversification Opportunities for First Eagle and Balanced Fund
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between First and Balanced is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Balanced Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balanced Fund Investor 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 Balanced Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balanced Fund Investor has no effect on the direction of First Eagle i.e., First Eagle and Balanced Fund go up and down completely randomly.
Pair Corralation between First Eagle and Balanced Fund
Assuming the 90 days horizon First Eagle Global is expected to generate 0.79 times more return on investment than Balanced Fund. However, First Eagle Global is 1.27 times less risky than Balanced Fund. It trades about 0.12 of its potential returns per unit of risk. Balanced Fund Investor is currently generating about 0.09 per unit of risk. If you would invest 1,266 in First Eagle Global on September 1, 2024 and sell it today you would earn a total of 124.00 from holding First Eagle Global or generate 9.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
First Eagle Global vs. Balanced Fund Investor
Performance |
| Timeline |
| First Eagle Global |
| Balanced Fund Investor |
First Eagle and Balanced Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Balanced Fund
The main advantage of trading using opposite First Eagle and Balanced Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Balanced Fund 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 Balanced Fund will offset losses from the drop in Balanced Fund's long position.| First Eagle vs. Dws Government Money | First Eagle vs. Chestnut Street Exchange | First Eagle vs. American Century Investment | First Eagle vs. Ashmore Emerging Markets |
| Balanced Fund vs. Select Fund Investor | Balanced Fund vs. Heritage Fund Investor | Balanced Fund vs. Value Fund Investor | Balanced Fund vs. Growth Fund Investor |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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