Correlation Between Siit High and First Eagle
Can any of the company-specific risk be diversified away by investing in both Siit High and First Eagle 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 Siit High and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit High Yield and First Eagle Fund, you can compare the effects of market volatilities on Siit High and First Eagle 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 Siit High with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit High and First Eagle.
Diversification Opportunities for Siit High and First Eagle
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siit and First is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Siit High Yield and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund and Siit High 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 Siit High Yield are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Fund has no effect on the direction of Siit High i.e., Siit High and First Eagle go up and down completely randomly.
Pair Corralation between Siit High and First Eagle
Assuming the 90 days horizon Siit High is expected to generate 2.1 times less return on investment than First Eagle. But when comparing it to its historical volatility, Siit High Yield is 2.7 times less risky than First Eagle. It trades about 0.21 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,623 in First Eagle Fund on September 1, 2024 and sell it today you would earn a total of 352.00 from holding First Eagle Fund or generate 13.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Siit High Yield vs. First Eagle Fund
Performance |
| Timeline |
| Siit High Yield |
| First Eagle Fund |
Siit High and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit High and First Eagle
The main advantage of trading using opposite Siit High and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit High position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.| Siit High vs. Simt Multi Asset Accumulation | Siit High vs. Saat Market Growth | Siit High vs. Simt Real Return | Siit High vs. Simt Small Cap |
| First Eagle vs. Siit High Yield | First Eagle vs. Franklin High Income | First Eagle vs. Strategic Allocation Aggressive | First Eagle vs. Aqr Risk Balanced Modities |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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