Correlation Between First Eagle and Pace Smallmedium
Can any of the company-specific risk be diversified away by investing in both First Eagle and Pace Smallmedium 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 Pace Smallmedium 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 Pace Smallmedium Growth, you can compare the effects of market volatilities on First Eagle and Pace Smallmedium 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 Pace Smallmedium. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Pace Smallmedium.
Diversification Opportunities for First Eagle and Pace Smallmedium
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Pace is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Pace Smallmedium Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pace Smallmedium Growth 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 Pace Smallmedium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pace Smallmedium Growth has no effect on the direction of First Eagle i.e., First Eagle and Pace Smallmedium go up and down completely randomly.
Pair Corralation between First Eagle and Pace Smallmedium
Assuming the 90 days horizon First Eagle is expected to generate 1.13 times less return on investment than Pace Smallmedium. In addition to that, First Eagle is 1.34 times more volatile than Pace Smallmedium Growth. It trades about 0.03 of its total potential returns per unit of risk. Pace Smallmedium Growth is currently generating about 0.05 per unit of volatility. If you would invest 1,173 in Pace Smallmedium Growth on September 12, 2024 and sell it today you would earn a total of 239.00 from holding Pace Smallmedium Growth or generate 20.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Pace Smallmedium Growth
Performance |
| Timeline |
| First Eagle Gold |
| Pace Smallmedium Growth |
First Eagle and Pace Smallmedium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Pace Smallmedium
The main advantage of trading using opposite First Eagle and Pace Smallmedium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Pace Smallmedium 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 Pace Smallmedium will offset losses from the drop in Pace Smallmedium's long position.| First Eagle vs. Pace Smallmedium Growth | First Eagle vs. Tfa Alphagen Growth | First Eagle vs. Needham Aggressive Growth | First Eagle vs. Champlain Mid Cap |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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