Correlation Between Bio Rad and First Eagle

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

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

Diversification Opportunities for Bio Rad and First Eagle

0.84

Correlation Coefficient

Bio Rad  First Eagle

Very poor diversification

The 3 months correlation between Bio and First is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bio Rad Laboratories and First Eagle Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Fund and Bio Rad 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 Bio Rad Laboratories 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 Fund has no effect on the direction of Bio Rad i.e., Bio Rad and First Eagle go up and down completely randomly.

Pair Corralation between Bio Rad and First Eagle

Considering the 90-day investment horizon Bio Rad Laboratories is expected to generate 4.74 times more return on investment than First Eagle. However, Bio Rad is 4.74 times more volatile than First Eagle Fund. It trades about 0.15 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.29 per unit of risk. If you would invest  22,714  in Bio Rad Laboratories on May 22, 2025 and sell it today you would earn a total of  6,123  from holding Bio Rad Laboratories or generate 26.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Bio Rad Laboratories  vs.  First Eagle Fund

Bio Rad Laboratories

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bio Rad Laboratories are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very weak forward indicators, Bio Rad displayed solid returns over the last few months and may actually be approaching a breakup point.

First Eagle Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Fund are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bio Rad and First Eagle

The main advantage of trading using opposite Bio Rad and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bio Rad 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 Bio Rad Laboratories and First Eagle Fund 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..