Correlation Between Fpa Crescent and First Eagle
Can any of the company-specific risk be diversified away by investing in both Fpa Crescent 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 Fpa Crescent and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fpa Crescent Fund and First Eagle Global, you can compare the effects of market volatilities on Fpa Crescent 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 Fpa Crescent with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fpa Crescent and First Eagle.
Diversification Opportunities for Fpa Crescent and First Eagle
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fpa and First is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Fpa Crescent Fund and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global and Fpa Crescent 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 Fpa Crescent Fund 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 Global has no effect on the direction of Fpa Crescent i.e., Fpa Crescent and First Eagle go up and down completely randomly.
Pair Corralation between Fpa Crescent and First Eagle
Assuming the 90 days horizon Fpa Crescent Fund is expected to generate 1.11 times more return on investment than First Eagle. However, Fpa Crescent is 1.11 times more volatile than First Eagle Global. It trades about 0.14 of its potential returns per unit of risk. First Eagle Global is currently generating about -0.06 per unit of risk. If you would invest 4,254 in Fpa Crescent Fund on August 29, 2024 and sell it today you would earn a total of 66.00 from holding Fpa Crescent Fund or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Fpa Crescent Fund vs. First Eagle Global
Performance |
| Timeline |
| Fpa Crescent |
| First Eagle Global |
Fpa Crescent and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fpa Crescent and First Eagle
The main advantage of trading using opposite Fpa Crescent and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fpa Crescent 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.| Fpa Crescent vs. Income Fund Of | Fpa Crescent vs. HUMANA INC | Fpa Crescent vs. Aquagold International | Fpa Crescent vs. Barloworld Ltd ADR |
| First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Ivy Asset Strategy | First Eagle vs. Fpa Crescent Fund | First Eagle vs. Templeton Global Bond |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |