Correlation Between Americafirst Monthly and First Eagle

Can any of the company-specific risk be diversified away by investing in both Americafirst Monthly 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 Americafirst Monthly and First Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Americafirst Monthly Risk On and First Eagle Smid, you can compare the effects of market volatilities on Americafirst Monthly 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 Americafirst Monthly with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Americafirst Monthly and First Eagle.

Diversification Opportunities for Americafirst Monthly and First Eagle

-0.03

Correlation Coefficient

Americafirst Monthly  First Eagle

Good diversification

The 3 months correlation between Americafirst and First is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Americafirst Monthly Risk On and First Eagle Smid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Smid and Americafirst Monthly 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 Americafirst Monthly Risk On 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 Smid has no effect on the direction of Americafirst Monthly i.e., Americafirst Monthly and First Eagle go up and down completely randomly.

Pair Corralation between Americafirst Monthly and First Eagle

Assuming the 90 days horizon Americafirst Monthly Risk On is expected to under-perform the First Eagle. But the mutual fund apears to be less risky and, when comparing its historical volatility, Americafirst Monthly Risk On is 2.95 times less risky than First Eagle. The mutual fund trades about -0.07 of its potential returns per unit of risk. The First Eagle Smid is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,162  in First Eagle Smid on July 18, 2025 and sell it today you would earn a total of  39.00  from holding First Eagle Smid or generate 3.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	76.19%
Values	Daily Returns

Americafirst Monthly Risk On  vs.  First Eagle Smid

Americafirst Monthly

Risk-Adjusted Performance

Weakest

Over the last 90 days Americafirst Monthly Risk On has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Americafirst Monthly is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

First Eagle Smid

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Smid are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, First Eagle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Americafirst Monthly and First Eagle

The main advantage of trading using opposite Americafirst Monthly and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Americafirst Monthly 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 Americafirst Monthly Risk On and First Eagle Smid 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.