Correlation Between First Eagle and Ocm Mutual

Can any of the company-specific risk be diversified away by investing in both First Eagle and Ocm Mutual 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 Ocm Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between First Eagle Gold and Ocm Mutual Fund, you can compare the effects of market volatilities on First Eagle and Ocm Mutual 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 Ocm Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Ocm Mutual.

Diversification Opportunities for First Eagle and Ocm Mutual

0.98

Correlation Coefficient

First Eagle  Ocm Mutual

Almost no diversification

The 3 months correlation between First and Ocm is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Ocm Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocm Mutual Fund 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 Gold are associated (or correlated) with Ocm Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocm Mutual Fund has no effect on the direction of First Eagle i.e., First Eagle and Ocm Mutual go up and down completely randomly.

Pair Corralation between First Eagle and Ocm Mutual

Assuming the 90 days horizon First Eagle Gold is expected to generate 0.96 times more return on investment than Ocm Mutual. However, First Eagle Gold is 1.04 times less risky than Ocm Mutual. It trades about -0.05 of its potential returns per unit of risk. Ocm Mutual Fund is currently generating about -0.1 per unit of risk. If you would invest  3,068  in First Eagle Gold on October 27, 2024 and sell it today you would lose (186.00) from holding First Eagle Gold or give up 6.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

First Eagle Gold  vs.  Ocm Mutual Fund

First Eagle Gold

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days First Eagle Gold has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, First Eagle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Ocm Mutual Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ocm Mutual Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with First Eagle and Ocm Mutual

The main advantage of trading using opposite First Eagle and Ocm Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Ocm Mutual 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 Ocm Mutual will offset losses from the drop in Ocm Mutual's long position.

The idea behind First Eagle Gold and Ocm Mutual Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.