Correlation Between First Eagle and Columbia Mid
Can any of the company-specific risk be diversified away by investing in both First Eagle and Columbia 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 Columbia 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 Columbia Mid Cap, you can compare the effects of market volatilities on First Eagle and Columbia 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 Columbia Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Columbia Mid.
Diversification Opportunities for First Eagle and Columbia Mid
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Columbia is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Columbia Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Columbia 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 Columbia Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Columbia Mid Cap has no effect on the direction of First Eagle i.e., First Eagle and Columbia Mid go up and down completely randomly.
Pair Corralation between First Eagle and Columbia Mid
Assuming the 90 days horizon First Eagle Gold is expected to generate 1.73 times more return on investment than Columbia Mid. However, First Eagle is 1.73 times more volatile than Columbia Mid Cap. It trades about 0.05 of its potential returns per unit of risk. Columbia Mid Cap is currently generating about 0.07 per unit of risk. If you would invest 2,001 in First Eagle Gold on September 12, 2024 and sell it today you would earn a total of 470.00 from holding First Eagle Gold or generate 23.49% 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. Columbia Mid Cap
Performance |
| Timeline |
| First Eagle Gold |
| Columbia Mid Cap |
First Eagle and Columbia Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Columbia Mid
The main advantage of trading using opposite First Eagle and Columbia Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Columbia 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 Columbia Mid will offset losses from the drop in Columbia 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 |
| Columbia Mid vs. T Rowe Price | Columbia Mid vs. Alliancebernstein National Municipal | Columbia Mid vs. Western Asset Municipal | Columbia Mid vs. Morningstar Defensive Bond |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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