Correlation Between First Eagle and Tiaa-cref Small-cap
Can any of the company-specific risk be diversified away by investing in both First Eagle and Tiaa-cref Small-cap 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 Tiaa-cref Small-cap 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 Tiaa Cref Small Cap Blend, you can compare the effects of market volatilities on First Eagle and Tiaa-cref Small-cap 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 Tiaa-cref Small-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Tiaa-cref Small-cap.
Diversification Opportunities for First Eagle and Tiaa-cref Small-cap
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIRST and Tiaa-cref is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Tiaa Cref Small Cap Blend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref Small-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 Tiaa-cref Small-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa-cref Small-cap has no effect on the direction of First Eagle i.e., First Eagle and Tiaa-cref Small-cap go up and down completely randomly.
Pair Corralation between First Eagle and Tiaa-cref Small-cap
Assuming the 90 days horizon First Eagle Gold is expected to under-perform the Tiaa-cref Small-cap. In addition to that, First Eagle is 1.14 times more volatile than Tiaa Cref Small Cap Blend. It trades about -0.12 of its total potential returns per unit of risk. Tiaa Cref Small Cap Blend is currently generating about 0.29 per unit of volatility. If you would invest 2,514 in Tiaa Cref Small Cap Blend on September 3, 2024 and sell it today you would earn a total of 248.00 from holding Tiaa Cref Small Cap Blend or generate 9.86% 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. Tiaa Cref Small Cap Blend
Performance |
| Timeline |
| First Eagle Gold |
| Tiaa-cref Small-cap |
First Eagle and Tiaa-cref Small-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Tiaa-cref Small-cap
The main advantage of trading using opposite First Eagle and Tiaa-cref Small-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Tiaa-cref Small-cap 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 Tiaa-cref Small-cap will offset losses from the drop in Tiaa-cref Small-cap's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Spec | First Eagle vs. Oppenheimer Gold Special |
| Tiaa-cref Small-cap vs. Europac Gold Fund | Tiaa-cref Small-cap vs. Precious Metals And | Tiaa-cref Small-cap vs. Franklin Gold Precious | Tiaa-cref Small-cap vs. First Eagle Gold |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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