Correlation Between Victory Rs and First Eagle

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

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

Diversification Opportunities for Victory Rs and First Eagle

0.61

Correlation Coefficient

Victory Rs  First Eagle

Poor diversification

The 3 months correlation between Victory and First is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Victory Rs Mid and First Eagle Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Funds and Victory Rs 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 Victory Rs Mid 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 Funds has no effect on the direction of Victory Rs i.e., Victory Rs and First Eagle go up and down completely randomly.

Pair Corralation between Victory Rs and First Eagle

Assuming the 90 days horizon Victory Rs is expected to generate 2.8 times less return on investment than First Eagle. In addition to that, Victory Rs is 1.38 times more volatile than First Eagle Funds. It trades about 0.06 of its total potential returns per unit of risk. First Eagle Funds is currently generating about 0.25 per unit of volatility. If you would invest  1,185  in First Eagle Funds on July 8, 2025 and sell it today you would earn a total of  114.00  from holding First Eagle Funds or generate 9.62% return on investment over 90 days.

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

Victory Rs Mid  vs.  First Eagle Funds

Victory Rs Mid

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Victory Rs Mid are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Victory Rs is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

First Eagle Funds

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Funds are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Victory Rs and First Eagle

The main advantage of trading using opposite Victory Rs and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Victory Rs 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 Victory Rs Mid and First Eagle Funds 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.