Correlation Between First Eagle and Sterling Capital
Can any of the company-specific risk be diversified away by investing in both First Eagle and Sterling Capital 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 Sterling Capital 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 Sterling Capital Behavioral, you can compare the effects of market volatilities on First Eagle and Sterling Capital 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 Sterling Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Sterling Capital.
Diversification Opportunities for First Eagle and Sterling Capital
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Sterling is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Sterling Capital Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sterling Capital Beh 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 Sterling Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sterling Capital Beh has no effect on the direction of First Eagle i.e., First Eagle and Sterling Capital go up and down completely randomly.
Pair Corralation between First Eagle and Sterling Capital
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Sterling Capital. In addition to that, First Eagle is 2.36 times more volatile than Sterling Capital Behavioral. It trades about -0.06 of its total potential returns per unit of risk. Sterling Capital Behavioral is currently generating about 0.16 per unit of volatility. If you would invest 2,757 in Sterling Capital Behavioral on September 12, 2024 and sell it today you would earn a total of 209.00 from holding Sterling Capital Behavioral or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
First Eagle Gold vs. Sterling Capital Behavioral
Performance |
| Timeline |
| First Eagle Gold |
| Sterling Capital Beh |
First Eagle and Sterling Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Sterling Capital
The main advantage of trading using opposite First Eagle and Sterling Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Sterling Capital 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 Sterling Capital will offset losses from the drop in Sterling Capital's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Gold | First Eagle vs. Franklin Gold Precious | First Eagle vs. First Eagle Global |
| Sterling Capital vs. Mid Cap Growth | Sterling Capital vs. Smallcap Growth Fund | Sterling Capital vs. Praxis Growth Index | Sterling Capital vs. Small Pany Growth |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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