Correlation Between First Eagle and Strategic Income
Can any of the company-specific risk be diversified away by investing in both First Eagle and Strategic Income 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 Strategic Income 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 Strategic Income Portfolio, you can compare the effects of market volatilities on First Eagle and Strategic Income 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 Strategic Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Strategic Income.
Diversification Opportunities for First Eagle and Strategic Income
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Strategic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Strategic Income Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Income Por 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 Strategic Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Income Por has no effect on the direction of First Eagle i.e., First Eagle and Strategic Income go up and down completely randomly.
Pair Corralation between First Eagle and Strategic Income
If you would invest 2,427 in First Eagle Gold on December 1, 2024 and sell it today you would earn a total of 224.00 from holding First Eagle Gold or generate 9.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
First Eagle Gold vs. Strategic Income Portfolio
Performance |
Timeline |
First Eagle Gold |
Strategic Income Por |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
First Eagle and Strategic Income Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Eagle and Strategic Income
The main advantage of trading using opposite First Eagle and Strategic Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Strategic Income 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 Strategic Income will offset losses from the drop in Strategic Income's long position.First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Global | First Eagle vs. Oppenheimer Gold Special |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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