Correlation Between Balanced Fund and First Eagle

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

By analyzing existing cross correlation between Balanced Fund Retail and First Eagle Fund, you can compare the effects of market volatilities on Balanced Fund and First Eagle 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 Balanced Fund with a short position of First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Balanced Fund and First Eagle.

Diversification Opportunities for Balanced Fund and First Eagle

0.97

Correlation Coefficient

Balanced Fund  First Eagle

Almost no diversification

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

Pair Corralation between Balanced Fund and First Eagle

Assuming the 90 days horizon Balanced Fund is expected to generate 1.55 times less return on investment than First Eagle. But when comparing it to its historical volatility, Balanced Fund Retail is 1.52 times less risky than First Eagle. It trades about 0.26 of its potential returns per unit of risk. First Eagle Fund is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  1,385  in First Eagle Fund on April 25, 2025 and sell it today you would earn a total of  169.00  from holding First Eagle Fund or generate 12.2% return on investment over 90 days.

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

Balanced Fund Retail  vs.  First Eagle Fund

Balanced Fund Retail

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Balanced Fund Retail are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Balanced Fund may actually be approaching a critical reversion point that can send shares even higher in August 2025.

First Eagle Fund

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Fund are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Balanced Fund and First Eagle

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

The idea behind Balanced Fund Retail and First Eagle 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.