Correlation Between First Eagle and Blackrock Multi-asset
Can any of the company-specific risk be diversified away by investing in both First Eagle and Blackrock Multi-asset 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 First Eagle and Blackrock Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Global and Blackrock Multi Asset Income, you can compare the effects of market volatilities on First Eagle and Blackrock Multi-asset 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 First Eagle with a short position of Blackrock Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Blackrock Multi-asset.
Diversification Opportunities for First Eagle and Blackrock Multi-asset
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIRST and Blackrock is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Blackrock Multi Asset Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Multi Asset and First Eagle 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 First Eagle Global are associated (or correlated) with Blackrock Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Multi Asset has no effect on the direction of First Eagle i.e., First Eagle and Blackrock Multi-asset go up and down completely randomly.
Pair Corralation between First Eagle and Blackrock Multi-asset
Assuming the 90 days horizon First Eagle Global is expected to generate 1.84 times more return on investment than Blackrock Multi-asset. However, First Eagle is 1.84 times more volatile than Blackrock Multi Asset Income. It trades about 0.09 of its potential returns per unit of risk. Blackrock Multi Asset Income is currently generating about 0.1 per unit of risk. If you would invest 5,620 in First Eagle Global on September 2, 2024 and sell it today you would earn a total of 1,790 from holding First Eagle Global or generate 31.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Blackrock Multi Asset Income
Performance |
| Timeline |
| First Eagle Global |
| Blackrock Multi Asset |
First Eagle and Blackrock Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Blackrock Multi-asset
The main advantage of trading using opposite First Eagle and Blackrock Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Blackrock Multi-asset 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 Blackrock Multi-asset will offset losses from the drop in Blackrock Multi-asset's long position.| First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Ivy Asset Strategy | First Eagle vs. Fpa Crescent Fund | First Eagle vs. Templeton Global Bond |
| Blackrock Multi-asset vs. Blackrock California Municipal | Blackrock Multi-asset vs. Blackrock Balanced Capital | Blackrock Multi-asset vs. Blackrock Eurofund Class | Blackrock Multi-asset vs. Blackrock 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |