Correlation Between First Eagle and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both First Eagle and Oppenheimer International 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 International 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 Oppenheimer International Bond, you can compare the effects of market volatilities on First Eagle and Oppenheimer International 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 International. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Oppenheimer International.
Diversification Opportunities for First Eagle and Oppenheimer International
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 Overseas and Oppenheimer International Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International 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 Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of First Eagle i.e., First Eagle and Oppenheimer International go up and down completely randomly.
Pair Corralation between First Eagle and Oppenheimer International
Assuming the 90 days horizon First Eagle Overseas is expected to generate 1.23 times more return on investment than Oppenheimer International. However, First Eagle is 1.23 times more volatile than Oppenheimer International Bond. It trades about 0.06 of its potential returns per unit of risk. Oppenheimer International Bond is currently generating about 0.04 per unit of risk. If you would invest 2,348 in First Eagle Overseas on August 26, 2024 and sell it today you would earn a total of 308.00 from holding First Eagle Overseas or generate 13.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Overseas vs. Oppenheimer International Bond
Performance |
| Timeline |
| First Eagle Overseas |
| Oppenheimer International |
First Eagle and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Oppenheimer International
The main advantage of trading using opposite First Eagle and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Oppenheimer International 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 International will offset losses from the drop in Oppenheimer International's long position.| First Eagle vs. First Eagle Global | First Eagle vs. Calamos Growth Fund | First Eagle vs. First Eagle Value | First Eagle vs. First Eagle Gold |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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