Correlation Between First Eagle and Eaton Vance
Can any of the company-specific risk be diversified away by investing in both First Eagle and Eaton Vance 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 Eaton Vance 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 Eaton Vance Global, you can compare the effects of market volatilities on First Eagle and Eaton Vance 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 Eaton Vance. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Eaton Vance.
Diversification Opportunities for First Eagle and Eaton Vance
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Eaton is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Eaton Vance Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eaton Vance Global 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 Eaton Vance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eaton Vance Global has no effect on the direction of First Eagle i.e., First Eagle and Eaton Vance go up and down completely randomly.
Pair Corralation between First Eagle and Eaton Vance
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Eaton Vance. In addition to that, First Eagle is 16.88 times more volatile than Eaton Vance Global. It trades about -0.05 of its total potential returns per unit of risk. Eaton Vance Global is currently generating about 0.1 per unit of volatility. If you would invest 842.00 in Eaton Vance Global on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Eaton Vance Global or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Eaton Vance Global
Performance |
| Timeline |
| First Eagle Gold |
| Eaton Vance Global |
First Eagle and Eaton Vance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Eaton Vance
The main advantage of trading using opposite First Eagle and Eaton Vance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Eaton Vance 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 Eaton Vance will offset losses from the drop in Eaton Vance'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 |
| Eaton Vance vs. T Rowe Price | Eaton Vance vs. California High Yield Municipal | Eaton Vance vs. Baird Strategic Municipal | Eaton Vance vs. Nuveen Minnesota Municipal |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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