Correlation Between Payden Absolute and First Eagle
Can any of the company-specific risk be diversified away by investing in both Payden Absolute 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 Payden Absolute and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden Absolute Return and First Eagle Gold, you can compare the effects of market volatilities on Payden Absolute 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 Payden Absolute with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Absolute and First Eagle.
Diversification Opportunities for Payden Absolute and First Eagle
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Payden and First is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Payden Absolute Return 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 Payden Absolute 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 Payden Absolute Return 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 Payden Absolute i.e., Payden Absolute and First Eagle go up and down completely randomly.
Pair Corralation between Payden Absolute and First Eagle
If you would invest 950.00 in Payden Absolute Return on August 28, 2024 and sell it today you would earn a total of 3.00 from holding Payden Absolute Return or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Payden Absolute Return vs. First Eagle Gold
Performance |
| Timeline |
| Payden Absolute Return |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Payden Absolute and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Absolute and First Eagle
The main advantage of trading using opposite Payden Absolute and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Absolute 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.| Payden Absolute vs. Payden Porate Bond | Payden Absolute vs. Payden Emerging Markets | Payden Absolute vs. The Payden Regal | Payden Absolute vs. Payden E Bond |
| First Eagle vs. First American Funds | First Eagle vs. First American Funds | First Eagle vs. First American Funds | First Eagle vs. First American Funds |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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