Correlation Between First Eagle and Qs Defensive
Can any of the company-specific risk be diversified away by investing in both First Eagle and Qs Defensive 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 Qs Defensive 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 Qs Defensive Growth, you can compare the effects of market volatilities on First Eagle and Qs Defensive 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 Qs Defensive. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Qs Defensive.
Diversification Opportunities for First Eagle and Qs Defensive
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between First and LMLRX is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Qs Defensive Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Defensive Growth 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 Qs Defensive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Defensive Growth has no effect on the direction of First Eagle i.e., First Eagle and Qs Defensive go up and down completely randomly.
Pair Corralation between First Eagle and Qs Defensive
Assuming the 90 days horizon First Eagle Gold is expected to generate 3.48 times more return on investment than Qs Defensive. However, First Eagle is 3.48 times more volatile than Qs Defensive Growth. It trades about 0.04 of its potential returns per unit of risk. Qs Defensive Growth is currently generating about 0.07 per unit of risk. If you would invest 1,886 in First Eagle Gold on October 16, 2024 and sell it today you would earn a total of 521.00 from holding First Eagle Gold or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Qs Defensive Growth
Performance |
| Timeline |
| First Eagle Gold |
| Qs Defensive Growth |
First Eagle and Qs Defensive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Qs Defensive
The main advantage of trading using opposite First Eagle and Qs Defensive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Qs Defensive 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 Qs Defensive will offset losses from the drop in Qs Defensive'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 |
| Qs Defensive vs. Gold And Precious | Qs Defensive vs. Europac Gold Fund | Qs Defensive vs. International Investors Gold | Qs Defensive vs. First Eagle Gold |
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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