Correlation Between First Eagle and Voya Real
Can any of the company-specific risk be diversified away by investing in both First Eagle and Voya 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 Voya 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 Voya Real Estate, you can compare the effects of market volatilities on First Eagle and Voya 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 Voya Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Voya Real.
Diversification Opportunities for First Eagle and Voya Real
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Voya is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Voya Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya 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 Voya Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Real Estate has no effect on the direction of First Eagle i.e., First Eagle and Voya Real go up and down completely randomly.
Pair Corralation between First Eagle and Voya Real
Assuming the 90 days horizon First Eagle Gold is expected to generate 1.32 times more return on investment than Voya Real. However, First Eagle is 1.32 times more volatile than Voya Real Estate. It trades about 0.03 of its potential returns per unit of risk. Voya Real Estate is currently generating about 0.04 per unit of risk. If you would invest 2,051 in First Eagle Gold on September 12, 2024 and sell it today you would earn a total of 420.00 from holding First Eagle Gold or generate 20.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
First Eagle Gold vs. Voya Real Estate
Performance |
| Timeline |
| First Eagle Gold |
| Voya Real Estate |
First Eagle and Voya Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Voya Real
The main advantage of trading using opposite First Eagle and Voya Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Voya 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 Voya Real will offset losses from the drop in Voya 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 |
| Voya Real vs. Health Biotchnology Portfolio | Voya Real vs. Hartford Healthcare Hls | Voya Real vs. Delaware Healthcare Fund | Voya Real vs. Baron Health Care |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |