Correlation Between SPACE and First Eagle

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

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

Diversification Opportunities for SPACE and First Eagle

-0.41

Correlation Coefficient

SPACE  First Eagle

Very good diversification

The 3 months correlation between SPACE and First is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SPACE and First Eagle Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Global and SPACE 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 SPACE 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 Global has no effect on the direction of SPACE i.e., SPACE and First Eagle go up and down completely randomly.

Pair Corralation between SPACE and First Eagle

Assuming the 90 days horizon SPACE is expected to under-perform the First Eagle. In addition to that, SPACE is 10.27 times more volatile than First Eagle Global. It trades about -0.04 of its total potential returns per unit of risk. First Eagle Global is currently generating about 0.17 per unit of volatility. If you would invest  7,122  in First Eagle Global on May 20, 2025 and sell it today you would earn a total of  381.00  from holding First Eagle Global or generate 5.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.38%
Values	Daily Returns

SPACE  vs.  First Eagle Global

SPACE

Risk-Adjusted Performance

Weakest

Over the last 90 days SPACE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for SPACE shareholders.

First Eagle Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Global are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, First Eagle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SPACE and First Eagle

The main advantage of trading using opposite SPACE and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPACE 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 SPACE and First Eagle Global 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.