Correlation Between Fisher Investments and First Eagle
Can any of the company-specific risk be diversified away by investing in both Fisher Investments 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 Fisher Investments and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fisher Small Cap and First Eagle Fund, you can compare the effects of market volatilities on Fisher Investments 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 Fisher Investments with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fisher Investments and First Eagle.
Diversification Opportunities for Fisher Investments and First Eagle
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fisher and First is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fisher Small Cap and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund and Fisher Investments 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 Fisher Small Cap 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 Fund has no effect on the direction of Fisher Investments i.e., Fisher Investments and First Eagle go up and down completely randomly.
Pair Corralation between Fisher Investments and First Eagle
Assuming the 90 days horizon Fisher Small Cap is expected to under-perform the First Eagle. In addition to that, Fisher Investments is 1.66 times more volatile than First Eagle Fund. It trades about -0.18 of its total potential returns per unit of risk. First Eagle Fund is currently generating about 0.08 per unit of volatility. If you would invest 2,701 in First Eagle Fund on December 28, 2024 and sell it today you would earn a total of 92.00 from holding First Eagle Fund or generate 3.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Fisher Small Cap vs. First Eagle Fund
Performance |
Timeline |
Fisher Investments |
First Eagle Fund |
Fisher Investments and First Eagle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fisher Investments and First Eagle
The main advantage of trading using opposite Fisher Investments and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fisher Investments 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.Fisher Investments vs. Lsv Small Cap | Fisher Investments vs. Tiaa Cref Mid Cap Value | Fisher Investments vs. Fidelity Small Cap | Fisher Investments vs. Transamerica Financial Life |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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