Correlation Between First Eagle and Guidepath Growth

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

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

Diversification Opportunities for First Eagle and Guidepath Growth

0.99

Correlation Coefficient

First Eagle  Guidepath Growth

No risk reduction

The 3 months correlation between First and Guidepath is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Fund and Guidepath Growth And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Growth And and First Eagle 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 First Eagle Fund are associated (or correlated) with Guidepath Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Growth And has no effect on the direction of First Eagle i.e., First Eagle and Guidepath Growth go up and down completely randomly.

Pair Corralation between First Eagle and Guidepath Growth

Assuming the 90 days horizon First Eagle Fund is expected to generate 1.18 times more return on investment than Guidepath Growth. However, First Eagle is 1.18 times more volatile than Guidepath Growth And. It trades about 0.25 of its potential returns per unit of risk. Guidepath Growth And is currently generating about 0.2 per unit of risk. If you would invest  2,498  in First Eagle Fund on April 29, 2025 and sell it today you would earn a total of  292.00  from holding First Eagle Fund or generate 11.69% return on investment over 90 days.

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

First Eagle Fund  vs.  Guidepath Growth And

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 basic indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Guidepath Growth And

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Guidepath Growth And are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Guidepath Growth may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with First Eagle and Guidepath Growth

The main advantage of trading using opposite First Eagle and Guidepath Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Guidepath Growth 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 Guidepath Growth will offset losses from the drop in Guidepath Growth's long position.

The idea behind First Eagle Fund and Guidepath Growth And 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.