Correlation Between First Eagle and Janus Balanced

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

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

Diversification Opportunities for First Eagle and Janus Balanced

0.1

Correlation Coefficient

First Eagle  Janus Balanced

Average diversification

The 3 months correlation between First and Janus is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Janus Balanced Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Balanced 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 Global are associated (or correlated) with Janus Balanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Balanced has no effect on the direction of First Eagle i.e., First Eagle and Janus Balanced go up and down completely randomly.

Pair Corralation between First Eagle and Janus Balanced

Assuming the 90 days horizon First Eagle Global is expected to generate 0.85 times more return on investment than Janus Balanced. However, First Eagle Global is 1.17 times less risky than Janus Balanced. It trades about 0.21 of its potential returns per unit of risk. Janus Balanced Fund is currently generating about -0.04 per unit of risk. If you would invest  6,389  in First Eagle Global on December 28, 2024 and sell it today you would earn a total of  494.00  from holding First Eagle Global or generate 7.73% return on investment over 90 days.

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

First Eagle Global  vs.  Janus Balanced Fund

First Eagle Global

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Global are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Janus Balanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Janus Balanced Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Janus Balanced 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 Janus Balanced

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

The idea behind First Eagle Global and Janus Balanced 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.