Correlation Between First Eagle and M Large

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

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

Diversification Opportunities for First Eagle and M Large

0.91

Correlation Coefficient

First Eagle  M Large

Almost no diversification

The 3 months correlation between First and MTCGX is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Value and M Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M 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 Value are associated (or correlated) with M Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M Large Cap has no effect on the direction of First Eagle i.e., First Eagle and M Large go up and down completely randomly.

Pair Corralation between First Eagle and M Large

Assuming the 90 days horizon First Eagle Value is expected to generate 0.63 times more return on investment than M Large. However, First Eagle Value is 1.59 times less risky than M Large. It trades about 0.21 of its potential returns per unit of risk. M Large Cap is currently generating about 0.1 per unit of risk. If you would invest  2,333  in First Eagle Value on July 23, 2025 and sell it today you would earn a total of  179.00  from holding First Eagle Value or generate 7.67% 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 Value  vs.  M Large Cap

First Eagle Value

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Value are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in November 2025.

M Large Cap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in M Large Cap are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, M Large 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 M Large

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

The idea behind First Eagle Value and M 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 Stocks Directory module to find actively traded stocks across global markets.