Correlation Between Touchstone Sands and First Eagle
Can any of the company-specific risk be diversified away by investing in both Touchstone Sands 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 Touchstone Sands and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Touchstone Sands Capital and First Eagle Gold, you can compare the effects of market volatilities on Touchstone Sands 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 Touchstone Sands with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Touchstone Sands and First Eagle.
Diversification Opportunities for Touchstone Sands and First Eagle
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Touchstone and First is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Touchstone Sands Capital 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 Touchstone Sands 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 Touchstone Sands Capital 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 Touchstone Sands i.e., Touchstone Sands and First Eagle go up and down completely randomly.
Pair Corralation between Touchstone Sands and First Eagle
Assuming the 90 days horizon Touchstone Sands is expected to generate 1.05 times less return on investment than First Eagle. But when comparing it to its historical volatility, Touchstone Sands Capital is 2.31 times less risky than First Eagle. It trades about 0.15 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,534 in First Eagle Gold on April 30, 2025 and sell it today you would earn a total of 248.00 from holding First Eagle Gold or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Touchstone Sands Capital vs. First Eagle Gold
Performance |
| Timeline |
| Touchstone Sands Capital |
| First Eagle Gold |
Touchstone Sands and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Touchstone Sands and First Eagle
The main advantage of trading using opposite Touchstone Sands and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Touchstone Sands 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.| Touchstone Sands vs. Gmo Global Equity | Touchstone Sands vs. Pnc International Equity | Touchstone Sands vs. Us Vector Equity | Touchstone Sands vs. Touchstone International Equity |
| First Eagle vs. Gabelli Gold Fund | First Eagle vs. International Investors Gold | First Eagle vs. Gold And Precious | First Eagle vs. Wells Fargo Advantage |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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