Correlation Between M Large and First Eagle
Can any of the company-specific risk be diversified away by investing in both M Large 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 M Large and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between M Large Cap and First Eagle Gold, you can compare the effects of market volatilities on M Large 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 M Large with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of M Large and First Eagle.
Diversification Opportunities for M Large and First Eagle
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MTCGX and First is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding M Large Cap 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 M Large 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 M 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 Gold has no effect on the direction of M Large i.e., M Large and First Eagle go up and down completely randomly.
Pair Corralation between M Large and First Eagle
If you would invest 3,414 in M Large Cap on September 3, 2024 and sell it today you would earn a total of 277.00 from holding M Large Cap or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.8% |
| Values | Daily Returns |
M Large Cap vs. First Eagle Gold
Performance |
| Timeline |
| M Large Cap |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
M Large and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with M Large and First Eagle
The main advantage of trading using opposite M Large and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M Large 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.| M Large vs. Vanguard Total Stock | M Large vs. Vanguard 500 Index | M Large vs. Vanguard Total Stock | M Large vs. Vanguard Total Stock |
| First Eagle vs. Leggmason Partners Institutional | First Eagle vs. Arrow Managed Futures | First Eagle vs. Bbh Intermediate Municipal | First Eagle vs. Materials Portfolio Fidelity |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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