Correlation Between First Eagle and Mainstay Mon
Can any of the company-specific risk be diversified away by investing in both First Eagle and Mainstay Mon 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 Mainstay Mon 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 Mainstay Mon Stock, you can compare the effects of market volatilities on First Eagle and Mainstay Mon 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 Mainstay Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Mainstay Mon.
Diversification Opportunities for First Eagle and Mainstay Mon
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Mainstay is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock 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 Mainstay Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of First Eagle i.e., First Eagle and Mainstay Mon go up and down completely randomly.
Pair Corralation between First Eagle and Mainstay Mon
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Mainstay Mon. In addition to that, First Eagle is 2.12 times more volatile than Mainstay Mon Stock. It trades about -0.06 of its total potential returns per unit of risk. Mainstay Mon Stock is currently generating about 0.09 per unit of volatility. If you would invest 3,922 in Mainstay Mon Stock on September 12, 2024 and sell it today you would earn a total of 181.00 from holding Mainstay Mon Stock or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
First Eagle Gold vs. Mainstay Mon Stock
Performance |
| Timeline |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mainstay Mon Stock |
First Eagle and Mainstay Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Mainstay Mon
The main advantage of trading using opposite First Eagle and Mainstay Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Mainstay Mon 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 Mainstay Mon will offset losses from the drop in Mainstay Mon's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Global | First Eagle vs. Oppenheimer Gold Special |
| Mainstay Mon vs. Vanguard Total Stock | Mainstay Mon vs. Vanguard 500 Index | Mainstay Mon vs. Vanguard Total Stock | Mainstay Mon vs. Vanguard Total Stock |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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