Correlation Between First Eagle and Commonwealth Global
Can any of the company-specific risk be diversified away by investing in both First Eagle and Commonwealth Global 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 Commonwealth Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Eagle Global and Commonwealth Global Fund, you can compare the effects of market volatilities on First Eagle and Commonwealth Global 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 Commonwealth Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Commonwealth Global.
Diversification Opportunities for First Eagle and Commonwealth Global
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between First and Commonwealth is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Commonwealth Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Global 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 Global are associated (or correlated) with Commonwealth Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Global has no effect on the direction of First Eagle i.e., First Eagle and Commonwealth Global go up and down completely randomly.
Pair Corralation between First Eagle and Commonwealth Global
Assuming the 90 days horizon First Eagle Global is expected to generate 0.73 times more return on investment than Commonwealth Global. However, First Eagle Global is 1.37 times less risky than Commonwealth Global. It trades about 0.19 of its potential returns per unit of risk. Commonwealth Global Fund is currently generating about 0.12 per unit of risk. If you would invest 7,586 in First Eagle Global on June 5, 2025 and sell it today you would earn a total of 462.00 from holding First Eagle Global or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Eagle Global vs. Commonwealth Global Fund
Performance |
| Timeline |
| First Eagle Global |
| Commonwealth Global |
First Eagle and Commonwealth Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Eagle and Commonwealth Global
The main advantage of trading using opposite First Eagle and Commonwealth Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Commonwealth Global 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 Commonwealth Global will offset losses from the drop in Commonwealth Global's long position.| First Eagle vs. Blackrock Gbl Alloc | First Eagle vs. Ivy Asset Strategy | First Eagle vs. Fpa Crescent Fund | First Eagle vs. Templeton Global 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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