Correlation Between First Eagle and First Eagle
Can any of the company-specific risk be diversified away by investing in both First Eagle and First Eagle 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 First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Global and First Eagle Value, you can compare the effects of market volatilities on First Eagle and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and First Eagle.
Diversification Opportunities for First Eagle and First Eagle
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and First is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and First Eagle Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Value 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 Global are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Value has no effect on the direction of First Eagle i.e., First Eagle and First Eagle go up and down completely randomly.
Pair Corralation between First Eagle and First Eagle
Assuming the 90 days horizon First Eagle is expected to generate 1.51 times less return on investment than First Eagle. But when comparing it to its historical volatility, First Eagle Global is 1.0 times less risky than First Eagle. It trades about 0.1 of its potential returns per unit of risk. First Eagle Value is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,940 in First Eagle Value on September 1, 2024 and sell it today you would earn a total of 215.00 from holding First Eagle Value or generate 11.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
First Eagle Global vs. First Eagle Value
Performance |
| Timeline |
| First Eagle Global |
| First Eagle Value |
First Eagle and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and First Eagle
The main advantage of trading using opposite First Eagle and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| First Eagle vs. Ivy Asset Strategy | First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Templeton Global Bond | First Eagle vs. Loomis Sayles Strategic |
| First Eagle vs. Vanguard Small Cap Growth | First Eagle vs. Small Midcap Dividend Income | First Eagle vs. Artisan Small Cap | First Eagle vs. Kinetics Small Cap |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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