Correlation Between First Eagle and Qs Growth
Can any of the company-specific risk be diversified away by investing in both First Eagle and Qs Growth 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 Qs Growth 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 Qs Growth Fund, you can compare the effects of market volatilities on First Eagle and Qs Growth 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 Qs Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Qs Growth.
Diversification Opportunities for First Eagle and Qs Growth
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and LANIX is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Value and Qs Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Growth Fund 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 Qs Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Growth Fund has no effect on the direction of First Eagle i.e., First Eagle and Qs Growth go up and down completely randomly.
Pair Corralation between First Eagle and Qs Growth
Assuming the 90 days horizon First Eagle Value is expected to generate 0.78 times more return on investment than Qs Growth. However, First Eagle Value is 1.28 times less risky than Qs Growth. It trades about 0.15 of its potential returns per unit of risk. Qs Growth Fund is currently generating about 0.1 per unit of risk. If you would invest 2,120 in First Eagle Value on September 1, 2024 and sell it today you would earn a total of 248.00 from holding First Eagle Value or generate 11.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
First Eagle Value vs. Qs Growth Fund
Performance |
| Timeline |
| First Eagle Value |
| Qs Growth Fund |
First Eagle and Qs Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Qs Growth
The main advantage of trading using opposite First Eagle and Qs Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Qs Growth 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 Qs Growth will offset losses from the drop in Qs Growth's long position.| First Eagle vs. Dodge Cox Stock | First Eagle vs. Legg Mason Bw | First Eagle vs. Qs Large Cap | First Eagle vs. Dana Large Cap |
| Qs Growth vs. Gmo High Yield | Qs Growth vs. Artisan High Income | Qs Growth vs. Western Asset High | Qs Growth vs. Pace High Yield |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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