Correlation Between IAMGold and First Eagle
Can any of the company-specific risk be diversified away by investing in both IAMGold and First Eagle 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 IAMGold and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IAMGold and First Eagle Fund, you can compare the effects of market volatilities on IAMGold and First Eagle 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 IAMGold with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of IAMGold and First Eagle.
Diversification Opportunities for IAMGold and First Eagle
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between IAMGold and First is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding IAMGold and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund and IAMGold 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 IAMGold are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Fund has no effect on the direction of IAMGold i.e., IAMGold and First Eagle go up and down completely randomly.
Pair Corralation between IAMGold and First Eagle
Considering the 90-day investment horizon IAMGold is expected to generate 5.96 times more return on investment than First Eagle. However, IAMGold is 5.96 times more volatile than First Eagle Fund. It trades about 0.24 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.14 per unit of risk. If you would invest 807.00 in IAMGold on August 13, 2025 and sell it today you would earn a total of 523.00 from holding IAMGold or generate 64.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
IAMGold vs. First Eagle Fund
Performance |
| Timeline |
| IAMGold |
| First Eagle Fund |
IAMGold and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IAMGold and First Eagle
The main advantage of trading using opposite IAMGold and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IAMGold position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle's long position.The idea behind IAMGold and First Eagle Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| First Eagle vs. Qs Global Equity | First Eagle vs. Dreyfusstandish Global Fixed | First Eagle vs. Franklin Mutual Global | First Eagle vs. Rbc Bluebay Global |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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