Correlation Between Profunds Ultrashort and First Eagle
Can any of the company-specific risk be diversified away by investing in both Profunds Ultrashort 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 Profunds Ultrashort and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profunds Ultrashort Nasdaq 100 and First Eagle Gold, you can compare the effects of market volatilities on Profunds Ultrashort 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 Profunds Ultrashort with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profunds Ultrashort and First Eagle.
Diversification Opportunities for Profunds Ultrashort and First Eagle
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Profunds and First is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Profunds Ultrashort Nasdaq 100 and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold and Profunds Ultrashort 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 Profunds Ultrashort Nasdaq 100 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 Gold has no effect on the direction of Profunds Ultrashort i.e., Profunds Ultrashort and First Eagle go up and down completely randomly.
Pair Corralation between Profunds Ultrashort and First Eagle
If you would invest 2,489 in First Eagle Gold on August 28, 2024 and sell it today you would earn a total of 0.00 from holding First Eagle Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Profunds Ultrashort Nasdaq 100 vs. First Eagle Gold
Performance |
| Timeline |
| Profunds Ultrashort |
| First Eagle Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Profunds Ultrashort and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profunds Ultrashort and First Eagle
The main advantage of trading using opposite Profunds Ultrashort and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profunds Ultrashort 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.| Profunds Ultrashort vs. American Century California | Profunds Ultrashort vs. Blackrock Funds Iii | Profunds Ultrashort vs. Cref Money Market | Profunds Ultrashort vs. Massmutual Premier Funds |
| First Eagle vs. Artisan Emerging Markets | First Eagle vs. Fundvantage Trust | First Eagle vs. Kinetics Spin Off And | First Eagle vs. Versatile Bond Portfolio |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |