Correlation Between Elfun Diversified and First Eagle

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

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

Diversification Opportunities for Elfun Diversified and First Eagle

0.0

Correlation Coefficient

Elfun Diversified  First Eagle

Pay attention - limited upside

The 3 months correlation between Elfun and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Diversified Fund 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 Elfun Diversified 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 Elfun Diversified 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 Fund has no effect on the direction of Elfun Diversified i.e., Elfun Diversified and First Eagle go up and down completely randomly.

Pair Corralation between Elfun Diversified and First Eagle

If you would invest  2,095  in Elfun Diversified Fund on May 11, 2025 and sell it today you would earn a total of  129.00  from holding Elfun Diversified Fund or generate 6.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Elfun Diversified Fund  vs.  First Eagle Fund

Elfun Diversified

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Elfun Diversified Fund are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Elfun Diversified is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

First Eagle Fund

Risk-Adjusted Performance

Solid

Over the last 90 days First Eagle Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward 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 Elfun Diversified and First Eagle

The main advantage of trading using opposite Elfun Diversified and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Diversified 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 Elfun Diversified Fund 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.