Correlation Between First Eagle and Balter Invenomic

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

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

Diversification Opportunities for First Eagle and Balter Invenomic

-0.77

Correlation Coefficient

First Eagle  Balter Invenomic

Pay attention - limited upside

The 3 months correlation between First and Balter is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Overseas and Balter Invenomic Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balter Invenomic 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 Overseas are associated (or correlated) with Balter Invenomic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balter Invenomic has no effect on the direction of First Eagle i.e., First Eagle and Balter Invenomic go up and down completely randomly.

Pair Corralation between First Eagle and Balter Invenomic

Assuming the 90 days horizon First Eagle Overseas is expected to generate 0.54 times more return on investment than Balter Invenomic. However, First Eagle Overseas is 1.85 times less risky than Balter Invenomic. It trades about 0.19 of its potential returns per unit of risk. Balter Invenomic Fund is currently generating about -0.08 per unit of risk. If you would invest  3,065  in First Eagle Overseas on August 30, 2025 and sell it today you would earn a total of  240.00  from holding First Eagle Overseas or generate 7.83% return on investment over 90 days.

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

First Eagle Overseas  vs.  Balter Invenomic Fund

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

Balter Invenomic

Risk-Adjusted Performance

Weakest

Over the last 90 days Balter Invenomic Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Balter Invenomic is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with First Eagle and Balter Invenomic

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

The idea behind First Eagle Overseas and Balter Invenomic 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.