Correlation Between First Eagle and Ab Small
Can any of the company-specific risk be diversified away by investing in both First Eagle and Ab Small 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 Ab Small 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 Ab Small Cap, you can compare the effects of market volatilities on First Eagle and Ab Small 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 Ab Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Ab Small.
Diversification Opportunities for First Eagle and Ab Small
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and SCAVX is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Ab Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Small 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 Ab Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Small Cap has no effect on the direction of First Eagle i.e., First Eagle and Ab Small go up and down completely randomly.
Pair Corralation between First Eagle and Ab Small
Assuming the 90 days horizon First Eagle Gold is expected to generate 1.45 times more return on investment than Ab Small. However, First Eagle is 1.45 times more volatile than Ab Small Cap. It trades about 0.19 of its potential returns per unit of risk. Ab Small Cap is currently generating about 0.12 per unit of risk. If you would invest 2,978 in First Eagle Gold on April 14, 2025 and sell it today you would earn a total of 367.00 from holding First Eagle Gold or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Ab Small Cap
Performance |
| Timeline |
| First Eagle Gold |
| Ab Small Cap |
First Eagle and Ab Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Ab Small
The main advantage of trading using opposite First Eagle and Ab Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Ab Small 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 Ab Small will offset losses from the drop in Ab Small'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 |
| Ab Small vs. Calvert Bond Portfolio | Ab Small vs. Multisector Bond Sma | Ab Small vs. Siit High Yield | Ab Small vs. Intermediate Term Tax Free Bond |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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