Correlation Between First Eagle and Global Bond
Can any of the company-specific risk be diversified away by investing in both First Eagle and Global Bond 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 Global Bond 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 Global Bond Fund, you can compare the effects of market volatilities on First Eagle and Global Bond 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 Global Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Global Bond.
Diversification Opportunities for First Eagle and Global Bond
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between First and Global is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Global Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Bond 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 Global Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Bond Fund has no effect on the direction of First Eagle i.e., First Eagle and Global Bond go up and down completely randomly.
Pair Corralation between First Eagle and Global Bond
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Global Bond. In addition to that, First Eagle is 14.19 times more volatile than Global Bond Fund. It trades about -0.12 of its total potential returns per unit of risk. Global Bond Fund is currently generating about 0.27 per unit of volatility. If you would invest 949.00 in Global Bond Fund on September 2, 2024 and sell it today you would earn a total of 7.00 from holding Global Bond Fund or generate 0.74% 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. Global Bond Fund
Performance |
| Timeline |
| First Eagle Gold |
| Global Bond Fund |
First Eagle and Global Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Global Bond
The main advantage of trading using opposite First Eagle and Global Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Global Bond 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 Global Bond will offset losses from the drop in Global Bond's long position.| First Eagle vs. Franklin Gold Precious | First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Global | First Eagle vs. Ivy Asset Strategy |
| Global Bond vs. Foreign Bond Fund | Global Bond vs. Emerging Markets Bond | Global Bond vs. High Yield Fund | Global Bond vs. Low Duration Fund |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |