Correlation Between Voya Midcap and First Eagle

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

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

Diversification Opportunities for Voya Midcap and First Eagle

0.54

Correlation Coefficient

Voya Midcap  First Eagle

Very weak diversification

The 3 months correlation between Voya and First is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Voya Midcap Opportunities and First Eagle Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Value and Voya Midcap 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 Voya Midcap Opportunities 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 Value has no effect on the direction of Voya Midcap i.e., Voya Midcap and First Eagle go up and down completely randomly.

Pair Corralation between Voya Midcap and First Eagle

Assuming the 90 days horizon Voya Midcap Opportunities is expected to generate 2.03 times more return on investment than First Eagle. However, Voya Midcap is 2.03 times more volatile than First Eagle Value. It trades about 0.23 of its potential returns per unit of risk. First Eagle Value is currently generating about 0.24 per unit of risk. If you would invest  2,391  in Voya Midcap Opportunities on May 1, 2025 and sell it today you would earn a total of  366.00  from holding Voya Midcap Opportunities or generate 15.31% return on investment over 90 days.

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

Voya Midcap Opportunities  vs.  First Eagle Value

Voya Midcap Opportunities

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Voya Midcap Opportunities are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Voya Midcap showed solid returns over the last few months and may actually be approaching a breakup point.

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 18 (%) 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 August 2025.

Pair Trading with Voya Midcap and First Eagle

The main advantage of trading using opposite Voya Midcap and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Midcap 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 Voya Midcap Opportunities and First Eagle Value 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.

Check out your portfolio center.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..