Correlation Between Vy(r) Oppenheimer and First Eagle

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

By analyzing existing cross correlation between Vy Oppenheimer Global and First Eagle Gold, you can compare the effects of market volatilities on Vy(r) Oppenheimer 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 Vy(r) Oppenheimer with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vy(r) Oppenheimer and First Eagle.

Diversification Opportunities for Vy(r) Oppenheimer and First Eagle

-0.1

Correlation Coefficient

Vy(r) Oppenheimer  First Eagle

Good diversification

The 3 months correlation between Vy(r) and First is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Vy Oppenheimer Global and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold and Vy(r) Oppenheimer 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 Vy Oppenheimer Global 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 Gold has no effect on the direction of Vy(r) Oppenheimer i.e., Vy(r) Oppenheimer and First Eagle go up and down completely randomly.

Pair Corralation between Vy(r) Oppenheimer and First Eagle

Assuming the 90 days horizon Vy Oppenheimer Global is expected to under-perform the First Eagle. But the mutual fund apears to be less risky and, when comparing its historical volatility, Vy Oppenheimer Global is 1.35 times less risky than First Eagle. The mutual fund trades about -0.02 of its potential returns per unit of risk. The First Eagle Gold is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  2,275  in First Eagle Gold on December 19, 2024 and sell it today you would earn a total of  672.00  from holding First Eagle Gold or generate 29.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Vy Oppenheimer Global  vs.  First Eagle Gold

Vy Oppenheimer Global

Risk-Adjusted Performance

Very Weak

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

First Eagle Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Gold are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, First Eagle showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Vy(r) Oppenheimer and First Eagle

The main advantage of trading using opposite Vy(r) Oppenheimer and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vy(r) Oppenheimer 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.

The idea behind Vy Oppenheimer Global and First Eagle Gold 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.