Correlation Between First Eagle and Gamco Global
Can any of the company-specific risk be diversified away by investing in both First Eagle and Gamco Global 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 Gamco Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Small and Gamco Global Telecommunications, you can compare the effects of market volatilities on First Eagle and Gamco Global 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 Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Gamco Global.
Diversification Opportunities for First Eagle and Gamco Global
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Gamco is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Small and Gamco Global Telecommunication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Telecom 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 Small are associated (or correlated) with Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Telecom has no effect on the direction of First Eagle i.e., First Eagle and Gamco Global go up and down completely randomly.
Pair Corralation between First Eagle and Gamco Global
Assuming the 90 days horizon First Eagle is expected to generate 2.97 times less return on investment than Gamco Global. In addition to that, First Eagle is 1.73 times more volatile than Gamco Global Telecommunications. It trades about 0.05 of its total potential returns per unit of risk. Gamco Global Telecommunications is currently generating about 0.26 per unit of volatility. If you would invest 2,313 in Gamco Global Telecommunications on September 13, 2024 and sell it today you would earn a total of 61.00 from holding Gamco Global Telecommunications or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Small vs. Gamco Global Telecommunication
Performance |
| Timeline |
| First Eagle Small |
| Gamco Global Telecom |
First Eagle and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Gamco Global
The main advantage of trading using opposite First Eagle and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Gamco Global 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 Gamco Global will offset losses from the drop in Gamco Global's long position.| First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Fund |
| Gamco Global vs. Fidelity Small Cap | Gamco Global vs. Victory Rs Partners | Gamco Global vs. Lsv Small Cap | Gamco Global vs. Mutual Of America |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |