Correlation Between First Eagle and Fpa Queens
Can any of the company-specific risk be diversified away by investing in both First Eagle and Fpa Queens 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 Fpa Queens 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 Fpa Queens Road, you can compare the effects of market volatilities on First Eagle and Fpa Queens 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 Fpa Queens. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Fpa Queens.
Diversification Opportunities for First Eagle and Fpa Queens
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FIRST and Fpa is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Fpa Queens Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fpa Queens Road 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 Fpa Queens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fpa Queens Road has no effect on the direction of First Eagle i.e., First Eagle and Fpa Queens go up and down completely randomly.
Pair Corralation between First Eagle and Fpa Queens
Assuming the 90 days horizon First Eagle is expected to generate 1.86 times less return on investment than Fpa Queens. But when comparing it to its historical volatility, First Eagle Global is 2.31 times less risky than Fpa Queens. It trades about 0.08 of its potential returns per unit of risk. Fpa Queens Road is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,238 in Fpa Queens Road on September 3, 2024 and sell it today you would earn a total of 1,115 from holding Fpa Queens Road or generate 34.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Fpa Queens Road
Performance |
| Timeline |
| First Eagle Global |
| Fpa Queens Road |
First Eagle and Fpa Queens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Fpa Queens
The main advantage of trading using opposite First Eagle and Fpa Queens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Fpa Queens 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 Fpa Queens will offset losses from the drop in Fpa Queens' 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 |
| Fpa Queens vs. Blackrock Conservative Prprdptfinstttnl | Fpa Queens vs. Prudential Core Conservative | Fpa Queens vs. Delaware Limited Term Diversified |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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