Correlation Between First Eagle and Asg Global
Can any of the company-specific risk be diversified away by investing in both First Eagle and Asg Global 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 Asg Global 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 Asg Global Alternatives, you can compare the effects of market volatilities on First Eagle and Asg Global 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 Asg Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Asg Global.
Diversification Opportunities for First Eagle and Asg Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Asg is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Asg Global Alternatives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Global Alternatives 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 Asg Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Global Alternatives has no effect on the direction of First Eagle i.e., First Eagle and Asg Global go up and down completely randomly.
Pair Corralation between First Eagle and Asg Global
Assuming the 90 days horizon First Eagle Gold is expected to generate 4.04 times more return on investment than Asg Global. However, First Eagle is 4.04 times more volatile than Asg Global Alternatives. It trades about 0.36 of its potential returns per unit of risk. Asg Global Alternatives is currently generating about 0.4 per unit of risk. If you would invest 2,358 in First Eagle Gold on November 3, 2024 and sell it today you would earn a total of 224.00 from holding First Eagle Gold or generate 9.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Asg Global Alternatives
Performance |
| Timeline |
| First Eagle Gold |
| Asg Global Alternatives |
First Eagle and Asg Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Asg Global
The main advantage of trading using opposite First Eagle and Asg Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Asg Global 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 Asg Global will offset losses from the drop in Asg Global'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 |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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