Correlation Between First Eagle and Clearbridge Value
Can any of the company-specific risk be diversified away by investing in both First Eagle and Clearbridge Value 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 Clearbridge Value 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 Clearbridge Value Trust, you can compare the effects of market volatilities on First Eagle and Clearbridge Value 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 Clearbridge Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Clearbridge Value.
Diversification Opportunities for First Eagle and Clearbridge Value
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Clearbridge is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Clearbridge Value Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Value Trust 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 Clearbridge Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Value Trust has no effect on the direction of First Eagle i.e., First Eagle and Clearbridge Value go up and down completely randomly.
Pair Corralation between First Eagle and Clearbridge Value
Assuming the 90 days horizon First Eagle Gold is expected to generate 3.43 times more return on investment than Clearbridge Value. However, First Eagle is 3.43 times more volatile than Clearbridge Value Trust. It trades about 0.06 of its potential returns per unit of risk. Clearbridge Value Trust is currently generating about -0.02 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Clearbridge Value Trust
Performance |
| Timeline |
| First Eagle Gold |
| Clearbridge Value Trust |
First Eagle and Clearbridge Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Clearbridge Value
The main advantage of trading using opposite First Eagle and Clearbridge Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Clearbridge Value 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 Clearbridge Value will offset losses from the drop in Clearbridge Value'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 |
| Clearbridge Value vs. Franklin Growth Fund | Clearbridge Value vs. Franklin Total Return | Clearbridge Value vs. Franklin Rising Dividends | Clearbridge Value vs. Franklin Mutual Shares |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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