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 Value and First Eagle Overseas, 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
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between First and First is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Value and First Eagle Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Overseas 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 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 Overseas 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 Value is expected to generate 1.26 times more return on investment than First Eagle. However, First Eagle is 1.26 times more volatile than First Eagle Overseas. It trades about 0.09 of its potential returns per unit of risk. First Eagle Overseas is currently generating about 0.07 per unit of risk. If you would invest 1,658 in First Eagle Value on August 29, 2024 and sell it today you would earn a total of 637.00 from holding First Eagle Value or generate 38.42% 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. First Eagle Overseas
Performance |
| Timeline |
| First Eagle Value |
| First Eagle Overseas |
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. Rbc Ultra Short Fixed | First Eagle vs. Siit Ultra Short | First Eagle vs. Maryland Short Term Tax Free | First Eagle vs. Astor Longshort Fund |
| First Eagle vs. First Eagle Global | First Eagle vs. Calamos Growth Fund | First Eagle vs. First Eagle Value | First Eagle vs. First Eagle Gold |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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