Correlation Between First Eagle and Eagle Capital
Can any of the company-specific risk be diversified away by investing in both First Eagle and Eagle Capital 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 Eagle Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Value and Eagle Capital Appreciation, you can compare the effects of market volatilities on First Eagle and Eagle Capital 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 Eagle Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Eagle Capital.
Diversification Opportunities for First Eagle and Eagle Capital
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Eagle is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Value and Eagle Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Capital Apprec 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 Value are associated (or correlated) with Eagle Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Capital Apprec has no effect on the direction of First Eagle i.e., First Eagle and Eagle Capital go up and down completely randomly.
Pair Corralation between First Eagle and Eagle Capital
Assuming the 90 days horizon First Eagle Value is expected to generate 0.44 times more return on investment than Eagle Capital. However, First Eagle Value is 2.27 times less risky than Eagle Capital. It trades about 0.31 of its potential returns per unit of risk. Eagle Capital Appreciation is currently generating about 0.11 per unit of risk. If you would invest 2,090 in First Eagle Value on November 9, 2024 and sell it today you would earn a total of 75.00 from holding First Eagle Value or generate 3.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Value vs. Eagle Capital Appreciation
Performance |
| Timeline |
| First Eagle Value |
| Eagle Capital Apprec |
First Eagle and Eagle Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Eagle Capital
The main advantage of trading using opposite First Eagle and Eagle Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Eagle Capital 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 Eagle Capital will offset losses from the drop in Eagle Capital's long position.| First Eagle vs. Touchstone Small Cap | First Eagle vs. Ab Small Cap | First Eagle vs. Sp Smallcap 600 | First Eagle vs. Ab Small Cap |
| Eagle Capital vs. Touchstone Funds Group | Eagle Capital vs. Aqr Sustainable Long Short | Eagle Capital vs. Bbh Partner Fund | Eagle Capital vs. Franklin Emerging Market |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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