Correlation Between First Eagle and Alpine Ultra
Can any of the company-specific risk be diversified away by investing in both First Eagle and Alpine Ultra 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 Alpine Ultra 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 Alpine Ultra Short, you can compare the effects of market volatilities on First Eagle and Alpine Ultra 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 Alpine Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Alpine Ultra.
Diversification Opportunities for First Eagle and Alpine Ultra
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Alpine is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Value and Alpine Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpine Ultra Short 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 Alpine Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpine Ultra Short has no effect on the direction of First Eagle i.e., First Eagle and Alpine Ultra go up and down completely randomly.
Pair Corralation between First Eagle and Alpine Ultra
Assuming the 90 days horizon First Eagle Value is expected to under-perform the Alpine Ultra. In addition to that, First Eagle is 12.84 times more volatile than Alpine Ultra Short. It trades about -0.02 of its total potential returns per unit of risk. Alpine Ultra Short is currently generating about 0.2 per unit of volatility. If you would invest 995.00 in Alpine Ultra Short on December 4, 2024 and sell it today you would earn a total of 14.00 from holding Alpine Ultra Short or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Value vs. Alpine Ultra Short
Performance |
| Timeline |
| First Eagle Value |
| Alpine Ultra Short |
First Eagle and Alpine Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Alpine Ultra
The main advantage of trading using opposite First Eagle and Alpine Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Alpine Ultra 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 Alpine Ultra will offset losses from the drop in Alpine Ultra's long position.| First Eagle vs. Davis Series | First Eagle vs. Transamerica Funds | First Eagle vs. Dreyfus Institutional Reserves | First Eagle vs. Pace Select Advisors |
| Alpine Ultra vs. Alpine Ultra Short | Alpine Ultra vs. Alpine Dynamic Dividend | Alpine Ultra vs. Alpine Realty Income | Alpine Ultra vs. Alpine Global Infrastructure |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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