Correlation Between First Eagle and Mainstay Floating

Can any of the company-specific risk be diversified away by investing in both First Eagle and Mainstay Floating 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 Mainstay Floating 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 Mainstay Floating Rate, you can compare the effects of market volatilities on First Eagle and Mainstay Floating 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 Mainstay Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Mainstay Floating.

Diversification Opportunities for First Eagle and Mainstay Floating

0.0

Correlation Coefficient

First Eagle  Mainstay Floating

Pay attention - limited upside

The 3 months correlation between First and Mainstay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Mainstay Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Floating Rate 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 Mainstay Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Floating Rate has no effect on the direction of First Eagle i.e., First Eagle and Mainstay Floating go up and down completely randomly.

Pair Corralation between First Eagle and Mainstay Floating

If you would invest  0.00  in Mainstay Floating Rate on October 9, 2024 and sell it today you would earn a total of  0.00  from holding Mainstay Floating Rate or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

First Eagle Gold  vs.  Mainstay Floating Rate

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 latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Mainstay Floating Rate

Risk-Adjusted Performance

0 of 100

Good

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

Pair Trading with First Eagle and Mainstay Floating

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

The idea behind First Eagle Gold and Mainstay Floating Rate 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.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.