Correlation Between First Eagle and Catalyst/map Global

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

By analyzing existing cross correlation between First Eagle Gold and Catalystmap Global Equity, you can compare the effects of market volatilities on First Eagle and Catalyst/map Global 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 Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Catalyst/map Global.

Diversification Opportunities for First Eagle and Catalyst/map Global

0.64

Correlation Coefficient

First Eagle  Catalyst/map Global

Poor diversification

The 3 months correlation between First and Catalyst/map is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Gold and Catalystmap Global Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystmap Global Equity 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 Gold are associated (or correlated) with Catalyst/map Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystmap Global Equity has no effect on the direction of First Eagle i.e., First Eagle and Catalyst/map Global go up and down completely randomly.

Pair Corralation between First Eagle and Catalyst/map Global

Assuming the 90 days horizon First Eagle is expected to generate 1.25 times less return on investment than Catalyst/map Global. In addition to that, First Eagle is 3.88 times more volatile than Catalystmap Global Equity. It trades about 0.07 of its total potential returns per unit of risk. Catalystmap Global Equity is currently generating about 0.33 per unit of volatility. If you would invest  1,772  in Catalystmap Global Equity on April 30, 2025 and sell it today you would earn a total of  176.00  from holding Catalystmap Global Equity or generate 9.93% return on investment over 90 days.

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

First Eagle Gold  vs.  Catalystmap Global Equity

First Eagle Gold

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Gold are ranked lower than 5 (%) 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.

Catalystmap Global Equity

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmap Global Equity are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Catalyst/map Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with First Eagle and Catalyst/map Global

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

The idea behind First Eagle Gold and Catalystmap Global Equity 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.