Correlation Between First Eagle and Jpmorgan Mid
Can any of the company-specific risk be diversified away by investing in both First Eagle and Jpmorgan Mid 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 Jpmorgan Mid 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 Jpmorgan Mid Cap, you can compare the effects of market volatilities on First Eagle and Jpmorgan Mid 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 Jpmorgan Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Jpmorgan Mid.
Diversification Opportunities for First Eagle and Jpmorgan Mid
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Jpmorgan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Jpmorgan Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Mid Cap 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 Jpmorgan Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Mid Cap has no effect on the direction of First Eagle i.e., First Eagle and Jpmorgan Mid go up and down completely randomly.
Pair Corralation between First Eagle and Jpmorgan Mid
Assuming the 90 days horizon First Eagle Gold is expected to generate 1.68 times more return on investment than Jpmorgan Mid. However, First Eagle is 1.68 times more volatile than Jpmorgan Mid Cap. It trades about 0.35 of its potential returns per unit of risk. Jpmorgan Mid Cap is currently generating about 0.19 per unit of risk. If you would invest 2,302 in First Eagle Gold on October 28, 2024 and sell it today you would earn a total of 205.00 from holding First Eagle Gold or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Jpmorgan Mid Cap
Performance |
| Timeline |
| First Eagle Gold |
| Jpmorgan Mid Cap |
First Eagle and Jpmorgan Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Jpmorgan Mid
The main advantage of trading using opposite First Eagle and Jpmorgan Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Jpmorgan Mid 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 Jpmorgan Mid will offset losses from the drop in Jpmorgan Mid'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 |
| Jpmorgan Mid vs. Jpmorgan Smartretirement 2035 | Jpmorgan Mid vs. Jpmorgan Smartretirement 2035 | Jpmorgan Mid vs. Jpmorgan Smartretirement 2035 | Jpmorgan Mid vs. Jpmorgan Smartretirement 2035 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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