Correlation Between First Eagle and Amg Yacktman
Can any of the company-specific risk be diversified away by investing in both First Eagle and Amg Yacktman 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 Amg Yacktman 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 Amg Yacktman Focused, you can compare the effects of market volatilities on First Eagle and Amg Yacktman 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 Amg Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Amg Yacktman.
Diversification Opportunities for First Eagle and Amg Yacktman
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between First and Amg is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Amg Yacktman Focused in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman Focused 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 Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman Focused has no effect on the direction of First Eagle i.e., First Eagle and Amg Yacktman go up and down completely randomly.
Pair Corralation between First Eagle and Amg Yacktman
Assuming the 90 days horizon First Eagle Global is expected to under-perform the Amg Yacktman. But the mutual fund apears to be less risky and, when comparing its historical volatility, First Eagle Global is 1.09 times less risky than Amg Yacktman. The mutual fund trades about -0.1 of its potential returns per unit of risk. The Amg Yacktman Focused is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,112 in Amg Yacktman Focused on August 30, 2024 and sell it today you would earn a total of 35.00 from holding Amg Yacktman Focused or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Amg Yacktman Focused
Performance |
| Timeline |
| First Eagle Global |
| Amg Yacktman Focused |
First Eagle and Amg Yacktman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Amg Yacktman
The main advantage of trading using opposite First Eagle and Amg Yacktman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Amg Yacktman 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 Amg Yacktman will offset losses from the drop in Amg Yacktman's long position.| First Eagle vs. Fpa Crescent Fund | First Eagle vs. Templeton Global Bond | First Eagle vs. First Eagle Overseas |
| Amg Yacktman vs. First Eagle Global | Amg Yacktman vs. Invesco International Growth | Amg Yacktman vs. Marketfield Fund Marketfield |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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