Correlation Between TIMBERCREEK FINL and FIRST NATIONAL
Can any of the company-specific risk be diversified away by investing in both TIMBERCREEK FINL and FIRST NATIONAL 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 TIMBERCREEK FINL and FIRST NATIONAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TIMBERCREEK FINL and FIRST NATIONAL FIN, you can compare the effects of market volatilities on TIMBERCREEK FINL and FIRST NATIONAL 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 TIMBERCREEK FINL with a short position of FIRST NATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TIMBERCREEK FINL and FIRST NATIONAL.
Diversification Opportunities for TIMBERCREEK FINL and FIRST NATIONAL
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TIMBERCREEK and FIRST is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding TIMBERCREEK FINL and FIRST NATIONAL FIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST NATIONAL FIN and TIMBERCREEK FINL 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 TIMBERCREEK FINL are associated (or correlated) with FIRST NATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST NATIONAL FIN has no effect on the direction of TIMBERCREEK FINL i.e., TIMBERCREEK FINL and FIRST NATIONAL go up and down completely randomly.
Pair Corralation between TIMBERCREEK FINL and FIRST NATIONAL
Assuming the 90 days horizon TIMBERCREEK FINL is expected to under-perform the FIRST NATIONAL. In addition to that, TIMBERCREEK FINL is 1.29 times more volatile than FIRST NATIONAL FIN. It trades about -0.01 of its total potential returns per unit of risk. FIRST NATIONAL FIN is currently generating about 0.08 per unit of volatility. If you would invest 2,323 in FIRST NATIONAL FIN on November 2, 2024 and sell it today you would earn a total of 337.00 from holding FIRST NATIONAL FIN or generate 14.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.04% |
| Values | Daily Returns |
TIMBERCREEK FINL vs. FIRST NATIONAL FIN
Performance |
| Timeline |
| TIMBERCREEK FINL |
| FIRST NATIONAL FIN |
TIMBERCREEK FINL and FIRST NATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TIMBERCREEK FINL and FIRST NATIONAL
The main advantage of trading using opposite TIMBERCREEK FINL and FIRST NATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TIMBERCREEK FINL position performs unexpectedly, FIRST NATIONAL 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 NATIONAL will offset losses from the drop in FIRST NATIONAL's long position.| TIMBERCREEK FINL vs. Chengdu PUTIAN Telecommunications | TIMBERCREEK FINL vs. Singapore Telecommunications Limited | TIMBERCREEK FINL vs. GEELY AUTOMOBILE | TIMBERCREEK FINL vs. Q2M Managementberatung AG |
| FIRST NATIONAL vs. CITIC Telecom International | FIRST NATIONAL vs. SIDETRADE EO 1 | FIRST NATIONAL vs. Ribbon Communications | FIRST NATIONAL vs. ecotel communication ag |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |