Correlation Between First Eagle and Clearbridge Large
Can any of the company-specific risk be diversified away by investing in both First Eagle and Clearbridge Large 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 Clearbridge Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Gold and Clearbridge Large Cap, you can compare the effects of market volatilities on First Eagle and Clearbridge Large 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 Clearbridge Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Clearbridge Large.
Diversification Opportunities for First Eagle and Clearbridge Large
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and Clearbridge is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Clearbridge Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearbridge Large Cap 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 Gold are associated (or correlated) with Clearbridge Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearbridge Large Cap has no effect on the direction of First Eagle i.e., First Eagle and Clearbridge Large go up and down completely randomly.
Pair Corralation between First Eagle and Clearbridge Large
Assuming the 90 days horizon First Eagle Gold is expected to generate 1.96 times more return on investment than Clearbridge Large. However, First Eagle is 1.96 times more volatile than Clearbridge Large Cap. It trades about 0.32 of its potential returns per unit of risk. Clearbridge Large Cap is currently generating about 0.05 per unit of risk. If you would invest 3,393 in First Eagle Gold on July 24, 2025 and sell it today you would earn a total of 1,319 from holding First Eagle Gold or generate 38.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
First Eagle Gold vs. Clearbridge Large Cap
Performance |
| Timeline |
| First Eagle Gold |
| Clearbridge Large Cap |
First Eagle and Clearbridge Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Clearbridge Large
The main advantage of trading using opposite First Eagle and Clearbridge Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Clearbridge Large 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 Clearbridge Large will offset losses from the drop in Clearbridge Large's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. Blckrk Lc Cr | First Eagle vs. Small Cap Growth | First Eagle vs. Small Cap Growth |
| Clearbridge Large vs. Oppenheimer Main Street | Clearbridge Large vs. Oppenheimer Main Street | Clearbridge Large vs. Hartford E Equity | Clearbridge Large vs. Hartford E Equity |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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