Correlation Between First Eagle and Dunham Porategovernment
Can any of the company-specific risk be diversified away by investing in both First Eagle and Dunham Porategovernment 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 Dunham Porategovernment 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 Dunham Porategovernment Bond, you can compare the effects of market volatilities on First Eagle and Dunham Porategovernment 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 Dunham Porategovernment. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Dunham Porategovernment.
Diversification Opportunities for First Eagle and Dunham Porategovernment
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIRST and Dunham is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Dunham Porategovernment Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunham Porategovernment 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 Dunham Porategovernment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunham Porategovernment has no effect on the direction of First Eagle i.e., First Eagle and Dunham Porategovernment go up and down completely randomly.
Pair Corralation between First Eagle and Dunham Porategovernment
Assuming the 90 days horizon First Eagle Gold is expected to generate 5.53 times more return on investment than Dunham Porategovernment. However, First Eagle is 5.53 times more volatile than Dunham Porategovernment Bond. It trades about 0.06 of its potential returns per unit of risk. Dunham Porategovernment Bond is currently generating about 0.11 per unit of risk. If you would invest 2,319 in First Eagle Gold on September 3, 2024 and sell it today you would earn a total of 271.00 from holding First Eagle Gold or generate 11.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Dunham Porategovernment Bond
Performance |
| Timeline |
| First Eagle Gold |
| Dunham Porategovernment |
First Eagle and Dunham Porategovernment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Dunham Porategovernment
The main advantage of trading using opposite First Eagle and Dunham Porategovernment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Dunham Porategovernment 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 Dunham Porategovernment will offset losses from the drop in Dunham Porategovernment's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Spec | First Eagle vs. Oppenheimer Gold Special |
| Dunham Porategovernment vs. First Eagle Gold | Dunham Porategovernment vs. International Investors Gold | Dunham Porategovernment vs. Global Gold Fund | Dunham Porategovernment vs. Gold And Precious |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |