Correlation Between First Eagle and Brown Advisory
Can any of the company-specific risk be diversified away by investing in both First Eagle and Brown Advisory 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 Brown Advisory 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 Brown Advisory Flexible, you can compare the effects of market volatilities on First Eagle and Brown Advisory 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 Brown Advisory. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Brown Advisory.
Diversification Opportunities for First Eagle and Brown Advisory
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FIRST and Brown is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Brown Advisory Flexible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brown Advisory Flexible 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 Brown Advisory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brown Advisory Flexible has no effect on the direction of First Eagle i.e., First Eagle and Brown Advisory go up and down completely randomly.
Pair Corralation between First Eagle and Brown Advisory
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Brown Advisory. In addition to that, First Eagle is 2.14 times more volatile than Brown Advisory Flexible. It trades about -0.04 of its total potential returns per unit of risk. Brown Advisory Flexible is currently generating about 0.18 per unit of volatility. If you would invest 4,188 in Brown Advisory Flexible on August 29, 2024 and sell it today you would earn a total of 255.00 from holding Brown Advisory Flexible or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Brown Advisory Flexible
Performance |
| Timeline |
| First Eagle Gold |
| Brown Advisory Flexible |
First Eagle and Brown Advisory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Brown Advisory
The main advantage of trading using opposite First Eagle and Brown Advisory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Brown Advisory 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 Brown Advisory will offset losses from the drop in Brown Advisory's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Special | First Eagle vs. Aquagold International | First Eagle vs. Morningstar Unconstrained Allocation |
| Brown Advisory vs. The Gold Bullion | Brown Advisory vs. First Eagle Gold | Brown Advisory vs. Gabelli Gold Fund | Brown Advisory vs. Global Gold Fund |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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