Correlation Between First Eagle and Transamerica Mid
Can any of the company-specific risk be diversified away by investing in both First Eagle and Transamerica Mid 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 Transamerica Mid 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 Transamerica Mid Cap, you can compare the effects of market volatilities on First Eagle and Transamerica Mid 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 Transamerica Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Transamerica Mid.
Diversification Opportunities for First Eagle and Transamerica Mid
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between First and Transamerica is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Transamerica Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Mid Cap 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 Transamerica Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Mid Cap has no effect on the direction of First Eagle i.e., First Eagle and Transamerica Mid go up and down completely randomly.
Pair Corralation between First Eagle and Transamerica Mid
Assuming the 90 days horizon First Eagle Global is expected to generate 0.69 times more return on investment than Transamerica Mid. However, First Eagle Global is 1.45 times less risky than Transamerica Mid. It trades about 0.09 of its potential returns per unit of risk. Transamerica Mid Cap is currently generating about 0.05 per unit of risk. If you would invest 5,588 in First Eagle Global on August 30, 2024 and sell it today you would earn a total of 1,786 from holding First Eagle Global or generate 31.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
First Eagle Global vs. Transamerica Mid Cap
Performance |
| Timeline |
| First Eagle Global |
| Transamerica Mid Cap |
First Eagle and Transamerica Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Transamerica Mid
The main advantage of trading using opposite First Eagle and Transamerica Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Transamerica Mid 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 Transamerica Mid will offset losses from the drop in Transamerica Mid'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 |
| Transamerica Mid vs. T Rowe Price | Transamerica Mid vs. Ms Global Fixed | Transamerica Mid vs. Us Global Investors | Transamerica Mid vs. Scharf Global Opportunity |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |