Correlation Between First Eagle and Pinnacle Sherman

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

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

Diversification Opportunities for First Eagle and Pinnacle Sherman

0.95

Correlation Coefficient

First Eagle  Pinnacle Sherman

Almost no diversification

The 3 months correlation between First and Pinnacle is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Global and Pinnacle Sherman Multi Strateg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinnacle Sherman Multi and First Eagle 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 First Eagle Global are associated (or correlated) with Pinnacle Sherman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinnacle Sherman Multi has no effect on the direction of First Eagle i.e., First Eagle and Pinnacle Sherman go up and down completely randomly.

Pair Corralation between First Eagle and Pinnacle Sherman

Assuming the 90 days horizon First Eagle is expected to generate 1.59 times less return on investment than Pinnacle Sherman. But when comparing it to its historical volatility, First Eagle Global is 1.0 times less risky than Pinnacle Sherman. It trades about 0.18 of its potential returns per unit of risk. Pinnacle Sherman Multi Strategy is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  1,100  in Pinnacle Sherman Multi Strategy on May 2, 2025 and sell it today you would earn a total of  100.00  from holding Pinnacle Sherman Multi Strategy or generate 9.09% return on investment over 90 days.

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

First Eagle Global  vs.  Pinnacle Sherman Multi Strateg

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 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, First Eagle is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pinnacle Sherman Multi

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pinnacle Sherman Multi Strategy are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Pinnacle Sherman may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with First Eagle and Pinnacle Sherman

The main advantage of trading using opposite First Eagle and Pinnacle Sherman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Eagle position performs unexpectedly, Pinnacle Sherman 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 Pinnacle Sherman will offset losses from the drop in Pinnacle Sherman's long position.

The idea behind First Eagle Global and Pinnacle Sherman Multi Strategy 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.