Correlation Between First Eagle and Fpa Crescent
Can any of the company-specific risk be diversified away by investing in both First Eagle and Fpa Crescent 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 Fpa Crescent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Overseas and Fpa Crescent Fund, you can compare the effects of market volatilities on First Eagle and Fpa Crescent 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 Fpa Crescent. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Fpa Crescent.
Diversification Opportunities for First Eagle and Fpa Crescent
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between First and Fpa is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Overseas and Fpa Crescent Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fpa Crescent 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 Overseas are associated (or correlated) with Fpa Crescent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fpa Crescent has no effect on the direction of First Eagle i.e., First Eagle and Fpa Crescent go up and down completely randomly.
Pair Corralation between First Eagle and Fpa Crescent
Assuming the 90 days horizon First Eagle Overseas is expected to under-perform the Fpa Crescent. In addition to that, First Eagle is 1.29 times more volatile than Fpa Crescent Fund. It trades about -0.12 of its total potential returns per unit of risk. Fpa Crescent Fund is currently generating about 0.1 per unit of volatility. If you would invest 4,203 in Fpa Crescent Fund on August 25, 2024 and sell it today you would earn a total of 88.00 from holding Fpa Crescent Fund or generate 2.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Overseas vs. Fpa Crescent Fund
Performance |
| Timeline |
| First Eagle Overseas |
| Fpa Crescent |
First Eagle and Fpa Crescent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Fpa Crescent
The main advantage of trading using opposite First Eagle and Fpa Crescent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Fpa Crescent 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 Fpa Crescent will offset losses from the drop in Fpa Crescent's long position.| First Eagle vs. First Eagle Global | First Eagle vs. Oppenheimer Developing Markets | First Eagle vs. Delaware Value Fund | First Eagle vs. Small Cap Value |
| Fpa Crescent vs. Permanent Portfolio Class | Fpa Crescent vs. Amg Yacktman Fund | Fpa Crescent vs. Berwyn Income Fund | Fpa Crescent vs. First Eagle Global |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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