Correlation Between First Eagle and American Century
Can any of the company-specific risk be diversified away by investing in both First Eagle and American Century 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 American Century 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 American Century Investment, you can compare the effects of market volatilities on First Eagle and American Century 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 American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and American Century.
Diversification Opportunities for First Eagle and American Century
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIRST and American is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and American Century Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century Inv 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 American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century Inv has no effect on the direction of First Eagle i.e., First Eagle and American Century go up and down completely randomly.
Pair Corralation between First Eagle and American Century
If you would invest 1,282 in First Eagle Global on September 3, 2024 and sell it today you would earn a total of 93.00 from holding First Eagle Global or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 15.07% |
| Values | Daily Returns |
First Eagle Global vs. American Century Investment
Performance |
| Timeline |
| First Eagle Global |
| American Century Inv |
First Eagle and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and American Century
The main advantage of trading using opposite First Eagle and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| First Eagle vs. Doubleline Global Bond | First Eagle vs. Mirova Global Green | First Eagle vs. 361 Global Longshort | First Eagle vs. Dreyfusstandish Global Fixed |
| American Century vs. Aqr Managed Futures | American Century vs. American Funds Inflation | American Century vs. Oklahoma College Savings | American Century vs. Ab Bond Inflation |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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