Correlation Between First Eagle and Wilmington International
Can any of the company-specific risk be diversified away by investing in both First Eagle and Wilmington International 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 Wilmington International 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 Wilmington International Fund, you can compare the effects of market volatilities on First Eagle and Wilmington International 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 Wilmington International. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Wilmington International.
Diversification Opportunities for First Eagle and Wilmington International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Wilmington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Wilmington International Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmington International 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 Wilmington International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmington International has no effect on the direction of First Eagle i.e., First Eagle and Wilmington International go up and down completely randomly.
Pair Corralation between First Eagle and Wilmington International
If you would invest (100.00) in Wilmington International Fund on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Wilmington International Fund or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
First Eagle Gold vs. Wilmington International Fund
Performance |
| Timeline |
| First Eagle Gold |
| Wilmington International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Eagle and Wilmington International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Wilmington International
The main advantage of trading using opposite First Eagle and Wilmington International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Wilmington International 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 Wilmington International will offset losses from the drop in Wilmington International'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 |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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