Correlation Between First Eagle and Large Capitalization
Can any of the company-specific risk be diversified away by investing in both First Eagle and Large Capitalization 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 Large Capitalization 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 Large Capitalization Growth, you can compare the effects of market volatilities on First Eagle and Large Capitalization 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 Large Capitalization. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Large Capitalization.
Diversification Opportunities for First Eagle and Large Capitalization
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Large is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Large Capitalization Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Capitalization 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 Large Capitalization. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Capitalization has no effect on the direction of First Eagle i.e., First Eagle and Large Capitalization go up and down completely randomly.
Pair Corralation between First Eagle and Large Capitalization
Assuming the 90 days horizon First Eagle Gold is expected to generate 1.65 times more return on investment than Large Capitalization. However, First Eagle is 1.65 times more volatile than Large Capitalization Growth. It trades about 0.19 of its potential returns per unit of risk. Large Capitalization Growth is currently generating about 0.16 per unit of risk. If you would invest 3,358 in First Eagle Gold on June 7, 2025 and sell it today you would earn a total of 589.00 from holding First Eagle Gold or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Gold vs. Large Capitalization Growth
Performance |
| Timeline |
| First Eagle Gold |
| Large Capitalization |
First Eagle and Large Capitalization Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Large Capitalization
The main advantage of trading using opposite First Eagle and Large Capitalization positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Large Capitalization 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 Large Capitalization will offset losses from the drop in Large Capitalization'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 |
| Large Capitalization vs. Strategic Advisers Income | Large Capitalization vs. Multi Manager High Yield | Large Capitalization vs. Msift High Yield | Large Capitalization vs. Neuberger Berman Income |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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