Correlation Between First Eagle and Sa Real
Can any of the company-specific risk be diversified away by investing in both First Eagle and Sa Real 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 Sa Real 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 Sa Real Estate, you can compare the effects of market volatilities on First Eagle and Sa Real 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 Sa Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Sa Real.
Diversification Opportunities for First Eagle and Sa Real
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and SAREX is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Sa Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sa Real Estate 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 Sa Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sa Real Estate has no effect on the direction of First Eagle i.e., First Eagle and Sa Real go up and down completely randomly.
Pair Corralation between First Eagle and Sa Real
Assuming the 90 days horizon First Eagle Gold is expected to generate 1.22 times more return on investment than Sa Real. However, First Eagle is 1.22 times more volatile than Sa Real Estate. It trades about 0.02 of its potential returns per unit of risk. Sa Real Estate is currently generating about 0.02 per unit of risk. If you would invest 2,176 in First Eagle Gold on October 13, 2024 and sell it today you would earn a total of 220.00 from holding First Eagle Gold or generate 10.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
First Eagle Gold vs. Sa Real Estate
Performance |
| Timeline |
| First Eagle Gold |
| Sa Real Estate |
First Eagle and Sa Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Sa Real
The main advantage of trading using opposite First Eagle and Sa Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Sa Real 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 Sa Real will offset losses from the drop in Sa Real'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 |
| Sa Real vs. Gold And Precious | Sa Real vs. Fidelity Advisor Gold | Sa Real vs. First Eagle Gold | Sa Real vs. Sprott Gold Equity |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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