Correlation Between Sa Real and First Eagle

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

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

Diversification Opportunities for Sa Real and First Eagle

0.4

Correlation Coefficient

Sa Real  First Eagle

Very weak diversification

The 3 months correlation between SAREX and First is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sa Real Estate 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 Sa Real 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 Sa Real Estate 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 Sa Real i.e., Sa Real and First Eagle go up and down completely randomly.

Pair Corralation between Sa Real and First Eagle

Assuming the 90 days horizon Sa Real Estate is expected to under-perform the First Eagle. But the mutual fund apears to be less risky and, when comparing its historical volatility, Sa Real Estate is 1.2 times less risky than First Eagle. The mutual fund trades about -0.03 of its potential returns per unit of risk. The First Eagle Small is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  971.00  in First Eagle Small on May 12, 2025 and sell it today you would earn a total of  79.00  from holding First Eagle Small or generate 8.14% return on investment over 90 days.

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

Sa Real Estate  vs.  First Eagle Small

Sa Real Estate

Risk-Adjusted Performance

Weakest

Over the last 90 days Sa Real Estate has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Sa Real 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

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First Eagle Small are ranked lower than 9 (%) 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 September 2025.

Pair Trading with Sa Real and First Eagle

The main advantage of trading using opposite Sa Real and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sa Real 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 Sa Real Estate 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.