Correlation Between Multisector Bond and First Eagle
Can any of the company-specific risk be diversified away by investing in both Multisector Bond 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 Multisector Bond and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multisector Bond Sma and First Eagle Gold, you can compare the effects of market volatilities on Multisector Bond 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 Multisector Bond with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multisector Bond and First Eagle.
Diversification Opportunities for Multisector Bond and First Eagle
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Multisector and First is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Multisector Bond Sma and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold and Multisector Bond 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 Multisector Bond Sma 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 Gold has no effect on the direction of Multisector Bond i.e., Multisector Bond and First Eagle go up and down completely randomly.
Pair Corralation between Multisector Bond and First Eagle
If you would invest 1,348 in Multisector Bond Sma on August 30, 2024 and sell it today you would earn a total of 19.00 from holding Multisector Bond Sma or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Multisector Bond Sma vs. First Eagle Gold
Performance |
| Timeline |
| Multisector Bond Sma |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Multisector Bond and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multisector Bond and First Eagle
The main advantage of trading using opposite Multisector Bond and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multisector Bond 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.| Multisector Bond vs. Columbia Porate Income | Multisector Bond vs. Columbia Ultra Short | Multisector Bond vs. Columbia Treasury Index | Multisector Bond vs. Columbia Small Cap |
| First Eagle vs. Multisector Bond Sma | First Eagle vs. Calamos Dynamic Convertible | First Eagle vs. Icon Bond Fund | First Eagle vs. T Rowe Price |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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