Correlation Between Qs Us and First Eagle
Can any of the company-specific risk be diversified away by investing in both Qs Us 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 Qs Us and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qs Large Cap and First Eagle Fund, you can compare the effects of market volatilities on Qs Us 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 Qs Us with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qs Us and First Eagle.
Diversification Opportunities for Qs Us and First Eagle
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LMUSX and First is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qs Large Cap and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund and Qs Us 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 Qs Large Cap 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 Fund has no effect on the direction of Qs Us i.e., Qs Us and First Eagle go up and down completely randomly.
Pair Corralation between Qs Us and First Eagle
Assuming the 90 days horizon Qs Large Cap is expected to generate 1.36 times more return on investment than First Eagle. However, Qs Us is 1.36 times more volatile than First Eagle Fund. It trades about 0.15 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.15 per unit of risk. If you would invest 1,922 in Qs Large Cap on September 4, 2024 and sell it today you would earn a total of 678.00 from holding Qs Large Cap or generate 35.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qs Large Cap vs. First Eagle Fund
Performance |
| Timeline |
| Qs Large Cap |
| First Eagle Fund |
Qs Us and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qs Us and First Eagle
The main advantage of trading using opposite Qs Us and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qs Us 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.| Qs Us vs. Oppenheimer Gold Special | Qs Us vs. Global Gold Fund | Qs Us vs. Global Gold Fund | Qs Us vs. Short Precious Metals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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