Correlation Between Ab Concentrated and First Eagle
Can any of the company-specific risk be diversified away by investing in both Ab Concentrated 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 Ab Concentrated and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ab Centrated Growth and First Eagle Gold, you can compare the effects of market volatilities on Ab Concentrated 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 Ab Concentrated with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab Concentrated and First Eagle.
Diversification Opportunities for Ab Concentrated and First Eagle
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between WPASX and First is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Ab Centrated Growth 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 Ab Concentrated 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 Ab Centrated Growth 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 Ab Concentrated i.e., Ab Concentrated and First Eagle go up and down completely randomly.
Pair Corralation between Ab Concentrated and First Eagle
Assuming the 90 days horizon Ab Centrated Growth is expected to generate 0.53 times more return on investment than First Eagle. However, Ab Centrated Growth is 1.89 times less risky than First Eagle. It trades about 0.2 of its potential returns per unit of risk. First Eagle Gold is currently generating about 0.04 per unit of risk. If you would invest 4,809 in Ab Centrated Growth on April 12, 2025 and sell it today you would earn a total of 612.00 from holding Ab Centrated Growth or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ab Centrated Growth vs. First Eagle Gold
Performance |
| Timeline |
| Ab Centrated Growth |
| First Eagle Gold |
Ab Concentrated and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ab Concentrated and First Eagle
The main advantage of trading using opposite Ab Concentrated and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab Concentrated 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.| Ab Concentrated vs. Gamco International Growth | Ab Concentrated vs. Crafword Dividend Growth | Ab Concentrated vs. Mid Cap Growth | Ab Concentrated vs. Templeton Growth Fund |
| First Eagle vs. First Eagle Gold | First Eagle vs. Franklin Gold Precious | First Eagle vs. First Eagle Gold | First Eagle vs. First Eagle 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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