Correlation Between Deutsche Multi and First Eagle
Can any of the company-specific risk be diversified away by investing in both Deutsche Multi 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 Deutsche Multi and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Multi Asset Moderate and First Eagle Gold, you can compare the effects of market volatilities on Deutsche Multi 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 Deutsche Multi with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Multi and First Eagle.
Diversification Opportunities for Deutsche Multi and First Eagle
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Deutsche and First is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Multi Asset Moderate 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 Deutsche Multi 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 Deutsche Multi Asset Moderate 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 Deutsche Multi i.e., Deutsche Multi and First Eagle go up and down completely randomly.
Pair Corralation between Deutsche Multi and First Eagle
Assuming the 90 days horizon Deutsche Multi is expected to generate 1.03 times less return on investment than First Eagle. But when comparing it to its historical volatility, Deutsche Multi Asset Moderate is 2.65 times less risky than First Eagle. It trades about 0.09 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,343 in First Eagle Gold on September 12, 2024 and sell it today you would earn a total of 146.00 from holding First Eagle Gold or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.35% |
| Values | Daily Returns |
Deutsche Multi Asset Moderate vs. First Eagle Gold
Performance |
| Timeline |
| Deutsche Multi Asset |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Deutsche Multi and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Multi and First Eagle
The main advantage of trading using opposite Deutsche Multi and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Multi 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.| Deutsche Multi vs. Strategic Allocation Servative | Deutsche Multi vs. Strategic Allocation Aggressive | Deutsche Multi vs. Value Fund Investor | Deutsche Multi vs. International Growth Fund |
| First Eagle vs. Pro Blend Moderate Term | First Eagle vs. Calvert Moderate Allocation | First Eagle vs. Deutsche Multi Asset Moderate | First Eagle vs. Jpmorgan Smartretirement 2035 |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |