Correlation Between First Eagle and Ubs International
Can any of the company-specific risk be diversified away by investing in both First Eagle and Ubs International 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 Ubs International 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 Ubs International Sustainable, you can compare the effects of market volatilities on First Eagle and Ubs International 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 Ubs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Ubs International.
Diversification Opportunities for First Eagle and Ubs International
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Ubs is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Ubs International Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs International 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 Ubs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs International has no effect on the direction of First Eagle i.e., First Eagle and Ubs International go up and down completely randomly.
Pair Corralation between First Eagle and Ubs International
Assuming the 90 days horizon First Eagle Gold is expected to generate 1.62 times more return on investment than Ubs International. However, First Eagle is 1.62 times more volatile than Ubs International Sustainable. It trades about 0.07 of its potential returns per unit of risk. Ubs International Sustainable is currently generating about -0.05 per unit of risk. If you would invest 2,384 in First Eagle Gold on January 7, 2025 and sell it today you would earn a total of 377.00 from holding First Eagle Gold or generate 15.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Ubs International Sustainable
Performance |
| Timeline |
| First Eagle Gold |
| Ubs International |
First Eagle and Ubs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Ubs International
The main advantage of trading using opposite First Eagle and Ubs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Ubs International 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 Ubs International will offset losses from the drop in Ubs International'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 |
| Ubs International vs. Legg Mason Partners | Ubs International vs. Investec Emerging Markets | Ubs International vs. Transamerica Emerging Markets | Ubs International vs. Fundvantage Trust |
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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