Correlation Between Mndvux and First Eagle

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Can any of the company-specific risk be diversified away by investing in both Mndvux 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 Mndvux and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mndvux and First Eagle Gold, you can compare the effects of market volatilities on Mndvux 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 Mndvux with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mndvux and First Eagle.

Diversification Opportunities for Mndvux and First Eagle

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Mndvux and First is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mndvux and First Eagle Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Gold and Mndvux 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 Mndvux 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 Gold has no effect on the direction of Mndvux i.e., Mndvux and First Eagle go up and down completely randomly.

Pair Corralation between Mndvux and First Eagle

If you would invest  4,197  in First Eagle Gold on August 14, 2025 and sell it today you would earn a total of  303.00  from holding First Eagle Gold or generate 7.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy2.38%
ValuesDaily Returns

Mndvux  vs.  First Eagle Gold

 Performance 
       Timeline  
Mndvux 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Mndvux has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Mndvux is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
First Eagle Gold 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Gold are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, First Eagle showed solid returns over the last few months and may actually be approaching a breakup point.

Mndvux and First Eagle Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mndvux and First Eagle

The main advantage of trading using opposite Mndvux and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mndvux 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 Mndvux and First Eagle Gold 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.
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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