Correlation Between Chase Growth and First Eagle
Can any of the company-specific risk be diversified away by investing in both Chase Growth 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 Chase Growth and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chase Growth Fund and First Eagle Global, you can compare the effects of market volatilities on Chase Growth 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 Chase Growth with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chase Growth and First Eagle.
Diversification Opportunities for Chase Growth and First Eagle
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chase and First is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Chase Growth Fund and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global and Chase Growth 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 Chase Growth Fund 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 Global has no effect on the direction of Chase Growth i.e., Chase Growth and First Eagle go up and down completely randomly.
Pair Corralation between Chase Growth and First Eagle
Assuming the 90 days horizon Chase Growth Fund is expected to under-perform the First Eagle. In addition to that, Chase Growth is 3.62 times more volatile than First Eagle Global. It trades about -0.2 of its total potential returns per unit of risk. First Eagle Global is currently generating about 0.44 per unit of volatility. If you would invest 1,357 in First Eagle Global on December 2, 2024 and sell it today you would earn a total of 35.00 from holding First Eagle Global or generate 2.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Chase Growth Fund vs. First Eagle Global
Performance |
Timeline |
Chase Growth |
First Eagle Global |
Chase Growth and First Eagle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chase Growth and First Eagle
The main advantage of trading using opposite Chase Growth and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chase Growth 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.Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity Fund |
First Eagle vs. Putnam Vertible Securities | First Eagle vs. Gabelli Convertible And | First Eagle vs. Victory Incore Investment | First Eagle vs. Virtus Convertible |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |