Correlation Between First Eagle and Rational Special
Can any of the company-specific risk be diversified away by investing in both First Eagle and Rational Special 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 Rational Special 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 Rational Special Situations, you can compare the effects of market volatilities on First Eagle and Rational Special 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 Rational Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Rational Special.
Diversification Opportunities for First Eagle and Rational Special
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Rational is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Rational Special Situations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rational Special Sit 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 Rational Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rational Special Sit has no effect on the direction of First Eagle i.e., First Eagle and Rational Special go up and down completely randomly.
Pair Corralation between First Eagle and Rational Special
Assuming the 90 days horizon First Eagle Gold is expected to generate 12.5 times more return on investment than Rational Special. However, First Eagle is 12.5 times more volatile than Rational Special Situations. It trades about 0.15 of its potential returns per unit of risk. Rational Special Situations is currently generating about 0.09 per unit of risk. If you would invest 3,258 in First Eagle Gold on May 30, 2025 and sell it today you would earn a total of 479.00 from holding First Eagle Gold or generate 14.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
First Eagle Gold vs. Rational Special Situations
Performance |
| Timeline |
| First Eagle Gold |
| Rational Special Sit |
First Eagle and Rational Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Rational Special
The main advantage of trading using opposite First Eagle and Rational Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Rational Special 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 Rational Special will offset losses from the drop in Rational Special's long position.| First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle Gold | First Eagle vs. Franklin Gold Precious | First Eagle vs. First Eagle Global |
| Rational Special vs. Rationalrgn Hedged Equity | Rational Special vs. Rationalrgn Hedged Equity | Rational Special vs. Rationalrgn Hedged Equity | Rational Special vs. Rational Dynamic Momentum |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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