Correlation Between Cref Money and First Eagle
Can any of the company-specific risk be diversified away by investing in both Cref Money 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 Cref Money and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and First Eagle Fund, you can compare the effects of market volatilities on Cref Money 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 Cref Money with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and First Eagle.
Diversification Opportunities for Cref Money and First Eagle
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cref and First is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund and Cref Money 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 Cref Money Market 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 Fund has no effect on the direction of Cref Money i.e., Cref Money and First Eagle go up and down completely randomly.
Pair Corralation between Cref Money and First Eagle
Assuming the 90 days trading horizon Cref Money is expected to generate 3.06 times less return on investment than First Eagle. But when comparing it to its historical volatility, Cref Money Market is 31.63 times less risky than First Eagle. It trades about 0.8 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,118 in First Eagle Fund on September 12, 2024 and sell it today you would earn a total of 711.00 from holding First Eagle Fund or generate 33.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
Cref Money Market vs. First Eagle Fund
Performance |
| Timeline |
| Cref Money Market |
| First Eagle Fund |
Cref Money and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and First Eagle
The main advantage of trading using opposite Cref Money and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money 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.| Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard 500 Index | Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard Total Stock |
| First Eagle vs. Hewitt Money Market | First Eagle vs. Chestnut Street Exchange | First Eagle vs. Money Market Obligations | First Eagle vs. Cref Money Market |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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