Correlation Between First Eagle and Nuveen High
Can any of the company-specific risk be diversified away by investing in both First Eagle and Nuveen High 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 Nuveen High 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 Nuveen High Income, you can compare the effects of market volatilities on First Eagle and Nuveen High 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 Nuveen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Nuveen High.
Diversification Opportunities for First Eagle and Nuveen High
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Nuveen is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Nuveen High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen High Income 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 Nuveen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen High Income has no effect on the direction of First Eagle i.e., First Eagle and Nuveen High go up and down completely randomly.
Pair Corralation between First Eagle and Nuveen High
Assuming the 90 days horizon First Eagle Gold is expected to generate 11.27 times more return on investment than Nuveen High. However, First Eagle is 11.27 times more volatile than Nuveen High Income. It trades about 0.06 of its potential returns per unit of risk. Nuveen High Income is currently generating about 0.33 per unit of risk. If you would invest 2,488 in First Eagle Gold on September 13, 2024 and sell it today you would earn a total of 53.00 from holding First Eagle Gold or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Nuveen High Income
Performance |
| Timeline |
| First Eagle Gold |
| Nuveen High Income |
First Eagle and Nuveen High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Nuveen High
The main advantage of trading using opposite First Eagle and Nuveen High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Nuveen High 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 Nuveen High will offset losses from the drop in Nuveen High'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 |
| Nuveen High vs. Nuveen Symphony Floating | Nuveen High vs. Nuveen Preferred Securities | Nuveen High vs. Tiaa Cref Bond Index | Nuveen High vs. Tiaa Cref Emerging Markets |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |