Correlation Between First Eagle and Retirement Living
Can any of the company-specific risk be diversified away by investing in both First Eagle and Retirement Living 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 Retirement Living 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 Retirement Living Through, you can compare the effects of market volatilities on First Eagle and Retirement Living 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 Retirement Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Retirement Living.
Diversification Opportunities for First Eagle and Retirement Living
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FIRST and RETIREMENT is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Retirement Living Through in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Living Through 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 Retirement Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Living Through has no effect on the direction of First Eagle i.e., First Eagle and Retirement Living go up and down completely randomly.
Pair Corralation between First Eagle and Retirement Living
Assuming the 90 days horizon First Eagle Gold is expected to generate 2.11 times more return on investment than Retirement Living. However, First Eagle is 2.11 times more volatile than Retirement Living Through. It trades about 0.06 of its potential returns per unit of risk. Retirement Living Through is currently generating about 0.1 per unit of risk. If you would invest 2,355 in First Eagle Gold on September 3, 2024 and sell it today you would earn a total of 235.00 from holding First Eagle Gold or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Retirement Living Through
Performance |
| Timeline |
| First Eagle Gold |
| Retirement Living Through |
First Eagle and Retirement Living Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Retirement Living
The main advantage of trading using opposite First Eagle and Retirement Living positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Retirement Living 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 Retirement Living will offset losses from the drop in Retirement Living's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Spec | First Eagle vs. Oppenheimer Gold Special |
| Retirement Living vs. Oppenheimer Gold Special | Retirement Living vs. Sprott Gold Equity | Retirement Living vs. First Eagle Gold | Retirement Living vs. Vy Goldman Sachs |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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