Correlation Between Fidelity Money and First Eagle

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

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

Diversification Opportunities for Fidelity Money and First Eagle

0.0

Correlation Coefficient

Fidelity Money  First Eagle

Pay attention - limited upside

The 3 months correlation between Fidelity and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Money Market and First Eagle Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Small and Fidelity Money 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 Fidelity Money Market 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 Small has no effect on the direction of Fidelity Money i.e., Fidelity Money and First Eagle go up and down completely randomly.

Pair Corralation between Fidelity Money and First Eagle

If you would invest  949.00  in First Eagle Small on May 21, 2025 and sell it today you would earn a total of  134.00  from holding First Eagle Small or generate 14.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Fidelity Money Market  vs.  First Eagle Small

Fidelity Money Market

Risk-Adjusted Performance

Weakest

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

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.

Pair Trading with Fidelity Money and First Eagle

The main advantage of trading using opposite Fidelity Money and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Money 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 Fidelity Money Market and First Eagle Small 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 Transaction History module to view history of all your transactions and understand their impact on performance.