Correlation Between First Eagle and Investec Global

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

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

Diversification Opportunities for First Eagle and Investec Global

0.93

Correlation Coefficient

First Eagle  Investec Global

Almost no diversification

The 3 months correlation between First and Investec is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Funds and Investec Global Franchise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Global Franchise 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 Funds are associated (or correlated) with Investec Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Global Franchise has no effect on the direction of First Eagle i.e., First Eagle and Investec Global go up and down completely randomly.

Pair Corralation between First Eagle and Investec Global

Assuming the 90 days horizon First Eagle Funds is expected to generate 0.97 times more return on investment than Investec Global. However, First Eagle Funds is 1.04 times less risky than Investec Global. It trades about 0.26 of its potential returns per unit of risk. Investec Global Franchise is currently generating about 0.22 per unit of risk. If you would invest  1,099  in First Eagle Funds on April 29, 2025 and sell it today you would earn a total of  103.00  from holding First Eagle Funds or generate 9.37% 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 Funds  vs.  Investec Global Franchise

First Eagle Funds

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Funds are ranked lower than 20 (%) 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.

Investec Global Franchise

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Investec Global Franchise are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Investec Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with First Eagle and Investec Global

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

The idea behind First Eagle Funds and Investec Global Franchise 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.