Correlation Between First Eagle and Delaware Value
Can any of the company-specific risk be diversified away by investing in both First Eagle and Delaware Value 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 Delaware Value 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 Delaware Value Fund, you can compare the effects of market volatilities on First Eagle and Delaware Value 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 Delaware Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Delaware Value.
Diversification Opportunities for First Eagle and Delaware Value
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and Delaware is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Delaware Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Value 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 Delaware Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Value has no effect on the direction of First Eagle i.e., First Eagle and Delaware Value go up and down completely randomly.
Pair Corralation between First Eagle and Delaware Value
Assuming the 90 days horizon First Eagle Global is expected to generate 0.81 times more return on investment than Delaware Value. However, First Eagle Global is 1.23 times less risky than Delaware Value. It trades about 0.46 of its potential returns per unit of risk. Delaware Value Fund is currently generating about 0.24 per unit of risk. If you would invest 6,756 in First Eagle Global on November 2, 2024 and sell it today you would earn a total of 343.00 from holding First Eagle Global or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Delaware Value Fund
Performance |
| Timeline |
| First Eagle Global |
| Delaware Value |
First Eagle and Delaware Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Delaware Value
The main advantage of trading using opposite First Eagle and Delaware Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Delaware Value 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 Delaware Value will offset losses from the drop in Delaware Value'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 |
| Delaware Value vs. Invesco Gold Special | Delaware Value vs. Goldman Sachs Strategic | Delaware Value vs. The Gold Bullion | Delaware Value vs. Gabelli Gold Fund |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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