Correlation Between First Eagle and Qs Large

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

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

Diversification Opportunities for First Eagle and Qs Large

0.97

Correlation Coefficient

First Eagle  Qs Large

Almost no diversification

The 3 months correlation between First and LMISX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Small and Qs Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qs Large Cap 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 Small are associated (or correlated) with Qs Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qs Large Cap has no effect on the direction of First Eagle i.e., First Eagle and Qs Large go up and down completely randomly.

Pair Corralation between First Eagle and Qs Large

Assuming the 90 days horizon First Eagle Small is expected to generate 1.63 times more return on investment than Qs Large. However, First Eagle is 1.63 times more volatile than Qs Large Cap. It trades about 0.2 of its potential returns per unit of risk. Qs Large Cap is currently generating about 0.24 per unit of risk. If you would invest  921.00  in First Eagle Small on May 2, 2025 and sell it today you would earn a total of  138.00  from holding First Eagle Small or generate 14.98% 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 Small  vs.  Qs Large Cap

First Eagle Small

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Small 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 showed solid returns over the last few months and may actually be approaching a breakup point.

Qs Large Cap

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Qs Large Cap are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Qs Large may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with First Eagle and Qs Large

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

The idea behind First Eagle Small and Qs Large Cap 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.