Correlation Between First Eagle and Ocm Mutual
Can any of the company-specific risk be diversified away by investing in both First Eagle and Ocm Mutual 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 Ocm Mutual 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 Ocm Mutual Fund, you can compare the effects of market volatilities on First Eagle and Ocm Mutual 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 Ocm Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Ocm Mutual.
Diversification Opportunities for First Eagle and Ocm Mutual
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FIRST and Ocm is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Ocm Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocm Mutual Fund 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 Ocm Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocm Mutual Fund has no effect on the direction of First Eagle i.e., First Eagle and Ocm Mutual go up and down completely randomly.
Pair Corralation between First Eagle and Ocm Mutual
Assuming the 90 days horizon First Eagle Gold is expected to generate 0.92 times more return on investment than Ocm Mutual. However, First Eagle Gold is 1.09 times less risky than Ocm Mutual. It trades about -0.19 of its potential returns per unit of risk. Ocm Mutual Fund is currently generating about -0.26 per unit of risk. If you would invest 2,799 in First Eagle Gold on August 29, 2024 and sell it today you would lose (234.00) from holding First Eagle Gold or give up 8.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
First Eagle Gold vs. Ocm Mutual Fund
Performance |
| Timeline |
| First Eagle Gold |
| Ocm Mutual Fund |
First Eagle and Ocm Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Ocm Mutual
The main advantage of trading using opposite First Eagle and Ocm Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Ocm Mutual 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 Ocm Mutual will offset losses from the drop in Ocm Mutual's 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 |
| Ocm Mutual vs. Jhancock Real Estate | Ocm Mutual vs. Heitman Real Estate | Ocm Mutual vs. Teachers Insurance And | Ocm Mutual vs. Us Real Estate |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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