Correlation Between Commonwealth Real and First Eagle

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

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

Diversification Opportunities for Commonwealth Real and First Eagle

0.34

Correlation Coefficient

Commonwealth Real  First Eagle

Weak diversification

The 3 months correlation between Commonwealth and First is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Commonwealth Real Estate 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 Commonwealth Real 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 Commonwealth Real Estate 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 Commonwealth Real i.e., Commonwealth Real and First Eagle go up and down completely randomly.

Pair Corralation between Commonwealth Real and First Eagle

Assuming the 90 days horizon Commonwealth Real is expected to generate 1.58 times less return on investment than First Eagle. In addition to that, Commonwealth Real is 1.29 times more volatile than First Eagle Fund. It trades about 0.12 of its total potential returns per unit of risk. First Eagle Fund is currently generating about 0.25 per unit of volatility. If you would invest  2,662  in First Eagle Fund on May 1, 2025 and sell it today you would earn a total of  301.00  from holding First Eagle Fund or generate 11.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.39%
Values	Daily Returns

Commonwealth Real Estate  vs.  First Eagle Fund

Commonwealth Real Estate

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Commonwealth Real Estate are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Commonwealth Real may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Commonwealth Real and First Eagle

The main advantage of trading using opposite Commonwealth Real and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commonwealth Real 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 Commonwealth Real Estate 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.