Correlation Between First Eagle and Calamos Market
Can any of the company-specific risk be diversified away by investing in both First Eagle and Calamos Market 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 Calamos Market 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 Calamos Market Neutral, you can compare the effects of market volatilities on First Eagle and Calamos Market 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 Calamos Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Calamos Market.
Diversification Opportunities for First Eagle and Calamos Market
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FIRST and Calamos is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Calamos Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos Market Neutral 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 Calamos Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos Market Neutral has no effect on the direction of First Eagle i.e., First Eagle and Calamos Market go up and down completely randomly.
Pair Corralation between First Eagle and Calamos Market
Assuming the 90 days horizon First Eagle Global is expected to generate 4.72 times more return on investment than Calamos Market. However, First Eagle is 4.72 times more volatile than Calamos Market Neutral. It trades about 0.11 of its potential returns per unit of risk. Calamos Market Neutral is currently generating about 0.25 per unit of risk. If you would invest 6,854 in First Eagle Global on September 1, 2024 and sell it today you would earn a total of 556.00 from holding First Eagle Global or generate 8.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Calamos Market Neutral
Performance |
| Timeline |
| First Eagle Global |
| Calamos Market Neutral |
First Eagle and Calamos Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Calamos Market
The main advantage of trading using opposite First Eagle and Calamos Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Calamos Market 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 Calamos Market will offset losses from the drop in Calamos Market'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 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |