Correlation Between Ashmore Emerging and First Eagle
Can any of the company-specific risk be diversified away by investing in both Ashmore Emerging 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 Ashmore Emerging and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ashmore Emerging Markets and First Eagle Gold, you can compare the effects of market volatilities on Ashmore Emerging 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 Ashmore Emerging with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ashmore Emerging and First Eagle.
Diversification Opportunities for Ashmore Emerging and First Eagle
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ashmore and First is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ashmore Emerging Markets 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 Ashmore Emerging 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 Ashmore Emerging Markets 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 Ashmore Emerging i.e., Ashmore Emerging and First Eagle go up and down completely randomly.
Pair Corralation between Ashmore Emerging and First Eagle
Assuming the 90 days horizon Ashmore Emerging is expected to generate 1.93 times less return on investment than First Eagle. But when comparing it to its historical volatility, Ashmore Emerging Markets is 1.85 times less risky than First Eagle. It trades about 0.14 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,219 in First Eagle Gold on May 26, 2025 and sell it today you would earn a total of 462.00 from holding First Eagle Gold or generate 14.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ashmore Emerging Markets vs. First Eagle Gold
Performance |
| Timeline |
| Ashmore Emerging Markets |
| First Eagle Gold |
Ashmore Emerging and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ashmore Emerging and First Eagle
The main advantage of trading using opposite Ashmore Emerging and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ashmore Emerging 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.| Ashmore Emerging vs. Ab Value Fund | Ashmore Emerging vs. Balanced Fund Retail | Ashmore Emerging vs. Iaadx | Ashmore Emerging vs. Abr 7525 Volatility |
| First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Gold | First Eagle vs. Oppenheimer Gold Spec | First Eagle vs. Oppenheimer Gold Special |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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