Correlation Between First Eagle and Midas Fund
Can any of the company-specific risk be diversified away by investing in both First Eagle and Midas 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 Midas Fund 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 Midas Fund Midas, you can compare the effects of market volatilities on First Eagle and Midas 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 Midas Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Midas Fund.
Diversification Opportunities for First Eagle and Midas Fund
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between First and Midas is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Midas Fund Midas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midas Fund Midas 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 Midas Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midas Fund Midas has no effect on the direction of First Eagle i.e., First Eagle and Midas Fund go up and down completely randomly.
Pair Corralation between First Eagle and Midas Fund
Assuming the 90 days horizon First Eagle is expected to generate 1.26 times less return on investment than Midas Fund. But when comparing it to its historical volatility, First Eagle Gold is 1.28 times less risky than Midas Fund. It trades about 0.06 of its potential returns per unit of risk. Midas Fund Midas is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 117.00 in Midas Fund Midas on September 3, 2024 and sell it today you would earn a total of 15.00 from holding Midas Fund Midas or generate 12.82% 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 Gold vs. Midas Fund Midas
Performance |
| Timeline |
| First Eagle Gold |
| Midas Fund Midas |
First Eagle and Midas Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Midas Fund
The main advantage of trading using opposite First Eagle and Midas Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Midas 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 Midas Fund will offset losses from the drop in Midas Fund'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 |
| Midas Fund vs. Gold And Precious | Midas Fund vs. World Precious Minerals | Midas Fund vs. Gabelli Gold Fund | Midas Fund vs. International Investors 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |