Correlation Between First Eagle and Oppenheimer Developing
Can any of the company-specific risk be diversified away by investing in both First Eagle and Oppenheimer Developing 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 Oppenheimer Developing 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 Oppenheimer Developing Markets, you can compare the effects of market volatilities on First Eagle and Oppenheimer Developing 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 Oppenheimer Developing. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Oppenheimer Developing.
Diversification Opportunities for First Eagle and Oppenheimer Developing
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Oppenheimer is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Oppenheimer Developing Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Developing 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 Oppenheimer Developing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Developing has no effect on the direction of First Eagle i.e., First Eagle and Oppenheimer Developing go up and down completely randomly.
Pair Corralation between First Eagle and Oppenheimer Developing
Assuming the 90 days horizon First Eagle Global is expected to generate 0.58 times more return on investment than Oppenheimer Developing. However, First Eagle Global is 1.73 times less risky than Oppenheimer Developing. It trades about 0.36 of its potential returns per unit of risk. Oppenheimer Developing Markets is currently generating about 0.13 per unit of risk. If you would invest 6,795 in First Eagle Global on November 9, 2024 and sell it today you would earn a total of 307.00 from holding First Eagle Global or generate 4.52% 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. Oppenheimer Developing Markets
Performance |
| Timeline |
| First Eagle Global |
| Oppenheimer Developing |
First Eagle and Oppenheimer Developing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Oppenheimer Developing
The main advantage of trading using opposite First Eagle and Oppenheimer Developing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Oppenheimer Developing 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 Oppenheimer Developing will offset losses from the drop in Oppenheimer Developing'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 |
| Oppenheimer Developing vs. Invesco Gold Special | Oppenheimer Developing vs. First Eagle Gold | Oppenheimer Developing vs. Deutsche Gold Precious | Oppenheimer Developing vs. Precious Metals And |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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