Correlation Between Great-west Goldman and First Eagle
Can any of the company-specific risk be diversified away by investing in both Great-west Goldman 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 Great-west Goldman and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Goldman Sachs and First Eagle Gold, you can compare the effects of market volatilities on Great-west Goldman 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 Great-west Goldman with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Goldman and First Eagle.
Diversification Opportunities for Great-west Goldman and First Eagle
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Great-west and FIRST is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Great West Goldman Sachs 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 Great-west Goldman 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 Great West Goldman Sachs 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 Great-west Goldman i.e., Great-west Goldman and First Eagle go up and down completely randomly.
Pair Corralation between Great-west Goldman and First Eagle
Assuming the 90 days horizon Great West Goldman Sachs is expected to generate 0.52 times more return on investment than First Eagle. However, Great West Goldman Sachs is 1.91 times less risky than First Eagle. It trades about 0.14 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.04 per unit of risk. If you would invest 885.00 in Great West Goldman Sachs on August 29, 2024 and sell it today you would earn a total of 135.00 from holding Great West Goldman Sachs or generate 15.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Goldman Sachs vs. First Eagle Gold
Performance |
| Timeline |
| Great West Goldman |
| First Eagle Gold |
Great-west Goldman and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Goldman and First Eagle
The main advantage of trading using opposite Great-west Goldman and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Goldman 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.| Great-west Goldman vs. Vanguard Mid Cap Value | Great-west Goldman vs. HUMANA INC | Great-west Goldman vs. Aquagold International | Great-west Goldman vs. Barloworld Ltd ADR |
| First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Special | First Eagle vs. Aquagold International | First Eagle vs. Morningstar Unconstrained Allocation |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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