Correlation Between First Eagle and Vy(r) Blackrock

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

By analyzing existing cross correlation between First Eagle Value and Vy Blackrock Inflation, you can compare the effects of market volatilities on First Eagle and Vy(r) Blackrock 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 Vy(r) Blackrock. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Eagle and Vy(r) Blackrock.

Diversification Opportunities for First Eagle and Vy(r) Blackrock

0.38

Correlation Coefficient

First Eagle  Vy(r) Blackrock

Weak diversification

The 3 months correlation between First and Vy(r) is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding First Eagle Value and Vy Blackrock Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Blackrock Inflation 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 Value are associated (or correlated) with Vy(r) Blackrock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Blackrock Inflation has no effect on the direction of First Eagle i.e., First Eagle and Vy(r) Blackrock go up and down completely randomly.

Pair Corralation between First Eagle and Vy(r) Blackrock

Assuming the 90 days horizon First Eagle Value is expected to generate 2.11 times more return on investment than Vy(r) Blackrock. However, First Eagle is 2.11 times more volatile than Vy Blackrock Inflation. It trades about 0.24 of its potential returns per unit of risk. Vy Blackrock Inflation is currently generating about 0.15 per unit of risk. If you would invest  1,944  in First Eagle Value on April 23, 2025 and sell it today you would earn a total of  160.00  from holding First Eagle Value or generate 8.23% return on investment over 90 days.

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

First Eagle Value  vs.  Vy Blackrock Inflation

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 fundamental indicators, First Eagle may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Vy Blackrock Inflation

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Vy Blackrock Inflation are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Vy(r) Blackrock is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with First Eagle and Vy(r) Blackrock

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

The idea behind First Eagle Value and Vy Blackrock Inflation 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.