Correlation Between First Eagle and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both First Eagle and Shelton Funds 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 Shelton Funds 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 Shelton Funds , you can compare the effects of market volatilities on First Eagle and Shelton Funds 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 Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Shelton Funds.
Diversification Opportunities for First Eagle and Shelton Funds
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIRST and Shelton is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds 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 Shelton Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Funds has no effect on the direction of First Eagle i.e., First Eagle and Shelton Funds go up and down completely randomly.
Pair Corralation between First Eagle and Shelton Funds
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Shelton Funds. In addition to that, First Eagle is 1.68 times more volatile than Shelton Funds . It trades about -0.04 of its total potential returns per unit of risk. Shelton Funds is currently generating about 0.1 per unit of volatility. If you would invest 4,039 in Shelton Funds on August 29, 2024 and sell it today you would earn a total of 176.00 from holding Shelton Funds or generate 4.36% 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. Shelton Funds
Performance |
| Timeline |
| First Eagle Gold |
| Shelton Funds |
First Eagle and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Shelton Funds
The main advantage of trading using opposite First Eagle and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Shelton Funds 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 Shelton Funds will offset losses from the drop in Shelton Funds' long position.| First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Special | First Eagle vs. Aquagold International | First Eagle vs. Morningstar Unconstrained Allocation |
| Shelton Funds vs. Gamco Global Gold | Shelton Funds vs. Fidelity Advisor Gold | Shelton Funds vs. First Eagle Gold | Shelton Funds vs. Goldman Sachs Centrated |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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