Correlation Between First Eagle and Siit Small
Can any of the company-specific risk be diversified away by investing in both First Eagle and Siit 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 Siit 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 Siit Small Cap, you can compare the effects of market volatilities on First Eagle and Siit 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 Siit Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Siit Small.
Diversification Opportunities for First Eagle and Siit Small
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Siit is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Siit Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit 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 Siit Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Small Cap has no effect on the direction of First Eagle i.e., First Eagle and Siit Small go up and down completely randomly.
Pair Corralation between First Eagle and Siit Small
Assuming the 90 days horizon First Eagle is expected to generate 1.54 times less return on investment than Siit Small. In addition to that, First Eagle is 1.76 times more volatile than Siit Small Cap. It trades about 0.08 of its total potential returns per unit of risk. Siit Small Cap is currently generating about 0.23 per unit of volatility. If you would invest 979.00 in Siit Small Cap on April 25, 2025 and sell it today you would earn a total of 150.00 from holding Siit Small Cap or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Siit Small Cap
Performance |
| Timeline |
| First Eagle Gold |
| Siit Small Cap |
First Eagle and Siit Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Siit Small
The main advantage of trading using opposite First Eagle and Siit Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Siit 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 Siit Small will offset losses from the drop in Siit 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 |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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