Correlation Between First Eagle and Barings Emerging
Can any of the company-specific risk be diversified away by investing in both First Eagle and Barings Emerging 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 Barings Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Gold and Barings Emerging Markets, you can compare the effects of market volatilities on First Eagle and Barings Emerging 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 Barings Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Barings Emerging.
Diversification Opportunities for First Eagle and Barings Emerging
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIRST and Barings is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Barings Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Emerging Markets 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 Gold are associated (or correlated) with Barings Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Emerging Markets has no effect on the direction of First Eagle i.e., First Eagle and Barings Emerging go up and down completely randomly.
Pair Corralation between First Eagle and Barings Emerging
Assuming the 90 days horizon First Eagle Gold is expected to generate 5.05 times more return on investment than Barings Emerging. However, First Eagle is 5.05 times more volatile than Barings Emerging Markets. It trades about 0.26 of its potential returns per unit of risk. Barings Emerging Markets is currently generating about 0.18 per unit of risk. If you would invest 2,649 in First Eagle Gold on October 23, 2024 and sell it today you would earn a total of 161.00 from holding First Eagle Gold or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Barings Emerging Markets
Performance |
| Timeline |
| First Eagle Gold |
| Barings Emerging Markets |
First Eagle and Barings Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Barings Emerging
The main advantage of trading using opposite First Eagle and Barings Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Barings Emerging 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 Barings Emerging will offset losses from the drop in Barings Emerging's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. Franklin Gold Precious | First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Global |
| Barings Emerging vs. Deutsche Gold Precious | Barings Emerging vs. Sprott Gold Equity | Barings Emerging vs. First Eagle Gold | Barings Emerging vs. Fidelity Advisor Gold |
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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