Correlation Between Delaware Value and First Eagle

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

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

Diversification Opportunities for Delaware Value and First Eagle

0.8

Correlation Coefficient

Delaware Value  First Eagle

Very poor diversification

The 3 months correlation between Delaware and First is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Value Fund and First Eagle Overseas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Overseas and Delaware Value 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 Delaware Value Fund 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 Overseas has no effect on the direction of Delaware Value i.e., Delaware Value and First Eagle go up and down completely randomly.

Pair Corralation between Delaware Value and First Eagle

Assuming the 90 days horizon Delaware Value is expected to generate 1.89 times less return on investment than First Eagle. In addition to that, Delaware Value is 1.3 times more volatile than First Eagle Overseas. It trades about 0.08 of its total potential returns per unit of risk. First Eagle Overseas is currently generating about 0.2 per unit of volatility. If you would invest  2,835  in First Eagle Overseas on May 15, 2025 and sell it today you would earn a total of  199.00  from holding First Eagle Overseas or generate 7.02% return on investment over 90 days.

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

Delaware Value Fund  vs.  First Eagle Overseas

Delaware Value

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Delaware Value Fund are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Delaware Value is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

First Eagle Overseas

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Overseas are ranked lower than 15 (%) 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 September 2025.

Pair Trading with Delaware Value and First Eagle

The main advantage of trading using opposite Delaware Value and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Value 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 Delaware Value Fund and First Eagle Overseas 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..