Correlation Between First Eagle and Eventide Gilead
Can any of the company-specific risk be diversified away by investing in both First Eagle and Eventide Gilead 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 Eventide Gilead 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 Eventide Gilead Fund, you can compare the effects of market volatilities on First Eagle and Eventide Gilead 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 Eventide Gilead. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Eventide Gilead.
Diversification Opportunities for First Eagle and Eventide Gilead
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIRST and EVENTIDE is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Eventide Gilead Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Gilead 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 Eventide Gilead. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Gilead has no effect on the direction of First Eagle i.e., First Eagle and Eventide Gilead go up and down completely randomly.
Pair Corralation between First Eagle and Eventide Gilead
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Eventide Gilead. In addition to that, First Eagle is 1.48 times more volatile than Eventide Gilead Fund. It trades about -0.23 of its total potential returns per unit of risk. Eventide Gilead Fund is currently generating about 0.24 per unit of volatility. If you would invest 5,019 in Eventide Gilead Fund on August 30, 2024 and sell it today you would earn a total of 348.00 from holding Eventide Gilead Fund or generate 6.93% 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. Eventide Gilead Fund
Performance |
| Timeline |
| First Eagle Gold |
| Eventide Gilead |
First Eagle and Eventide Gilead Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Eventide Gilead
The main advantage of trading using opposite First Eagle and Eventide Gilead positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Eventide Gilead 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 Eventide Gilead will offset losses from the drop in Eventide Gilead'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 |
| Eventide Gilead vs. First Eagle Gold | Eventide Gilead vs. Short Precious Metals | Eventide Gilead vs. Goldman Sachs Centrated | Eventide Gilead vs. James Balanced Golden |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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