Correlation Between First Eagle and Gold And
Can any of the company-specific risk be diversified away by investing in both First Eagle and Gold And 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 Gold And 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 Gold And Precious, you can compare the effects of market volatilities on First Eagle and Gold And 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 Gold And. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Gold And.
Diversification Opportunities for First Eagle and Gold And
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Gold is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Gold And Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold And Precious 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 Gold And. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold And Precious has no effect on the direction of First Eagle i.e., First Eagle and Gold And go up and down completely randomly.
Pair Corralation between First Eagle and Gold And
Assuming the 90 days horizon First Eagle is expected to generate 1.18 times less return on investment than Gold And. But when comparing it to its historical volatility, First Eagle Gold is 1.07 times less risky than Gold And. It trades about 0.08 of its potential returns per unit of risk. Gold And Precious is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 932.00 in Gold And Precious on August 28, 2024 and sell it today you would earn a total of 313.00 from holding Gold And Precious or generate 33.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Gold And Precious
Performance |
| Timeline |
| First Eagle Gold |
| Gold And Precious |
First Eagle and Gold And Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Gold And
The main advantage of trading using opposite First Eagle and Gold And positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Gold And 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 Gold And will offset losses from the drop in Gold And'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 |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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