Correlation Between First Eagle and Amg Yacktman
Can any of the company-specific risk be diversified away by investing in both First Eagle and Amg Yacktman 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 Amg Yacktman 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 Amg Yacktman Fund, you can compare the effects of market volatilities on First Eagle and Amg Yacktman 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 Amg Yacktman. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Amg Yacktman.
Diversification Opportunities for First Eagle and Amg Yacktman
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Amg is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Amg Yacktman Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Yacktman 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 Amg Yacktman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Yacktman has no effect on the direction of First Eagle i.e., First Eagle and Amg Yacktman go up and down completely randomly.
Pair Corralation between First Eagle and Amg Yacktman
Assuming the 90 days horizon First Eagle Global is expected to generate 0.98 times more return on investment than Amg Yacktman. However, First Eagle Global is 1.02 times less risky than Amg Yacktman. It trades about 0.11 of its potential returns per unit of risk. Amg Yacktman Fund is currently generating about 0.1 per unit of risk. If you would invest 7,198 in First Eagle Global on September 7, 2024 and sell it today you would earn a total of 231.00 from holding First Eagle Global or generate 3.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
First Eagle Global vs. Amg Yacktman Fund
Performance |
Timeline |
First Eagle Global |
Amg Yacktman |
First Eagle and Amg Yacktman Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Eagle and Amg Yacktman
The main advantage of trading using opposite First Eagle and Amg Yacktman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Amg Yacktman 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 Amg Yacktman will offset losses from the drop in Amg Yacktman's long position.First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Ivy Asset Strategy | First Eagle vs. Fpa Crescent Fund | First Eagle vs. Templeton Global Bond |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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