Correlation Between Marketfield Fund and First Eagle
Can any of the company-specific risk be diversified away by investing in both Marketfield Fund 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 Marketfield Fund and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marketfield Fund Marketfield and First Eagle Global, you can compare the effects of market volatilities on Marketfield Fund 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 Marketfield Fund with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marketfield Fund and First Eagle.
Diversification Opportunities for Marketfield Fund and First Eagle
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Marketfield and First is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Marketfield Fund Marketfield 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 Marketfield Fund 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 Marketfield Fund Marketfield 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 Marketfield Fund i.e., Marketfield Fund and First Eagle go up and down completely randomly.
Pair Corralation between Marketfield Fund and First Eagle
Assuming the 90 days horizon Marketfield Fund is expected to generate 2.64 times less return on investment than First Eagle. But when comparing it to its historical volatility, Marketfield Fund Marketfield is 1.14 times less risky than First Eagle. It trades about 0.04 of its potential returns per unit of risk. First Eagle Global is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5,671 in First Eagle Global on September 3, 2024 and sell it today you would earn a total of 1,739 from holding First Eagle Global or generate 30.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marketfield Fund Marketfield vs. First Eagle Global
Performance |
| Timeline |
| Marketfield Fund Mar |
| First Eagle Global |
Marketfield Fund and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marketfield Fund and First Eagle
The main advantage of trading using opposite Marketfield Fund and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marketfield Fund 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.| Marketfield Fund vs. Principal Lifetime Hybrid | Marketfield Fund vs. Touchstone Large Cap | Marketfield Fund vs. Volumetric Fund Volumetric | Marketfield Fund vs. T Rowe Price |
| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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