Correlation Between FIRST NATIONAL and OSB GROUP
Can any of the company-specific risk be diversified away by investing in both FIRST NATIONAL and OSB GROUP 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 NATIONAL and OSB GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST NATIONAL FIN and OSB GROUP PLC, you can compare the effects of market volatilities on FIRST NATIONAL and OSB GROUP 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 NATIONAL with a short position of OSB GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST NATIONAL and OSB GROUP.
Diversification Opportunities for FIRST NATIONAL and OSB GROUP
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FIRST and OSB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding FIRST NATIONAL FIN and OSB GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSB GROUP PLC and FIRST NATIONAL 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 NATIONAL FIN are associated (or correlated) with OSB GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSB GROUP PLC has no effect on the direction of FIRST NATIONAL i.e., FIRST NATIONAL and OSB GROUP go up and down completely randomly.
Pair Corralation between FIRST NATIONAL and OSB GROUP
Assuming the 90 days horizon FIRST NATIONAL FIN is expected to generate 0.8 times more return on investment than OSB GROUP. However, FIRST NATIONAL FIN is 1.26 times less risky than OSB GROUP. It trades about 0.08 of its potential returns per unit of risk. OSB GROUP PLC is currently generating about 0.06 per unit of risk. 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 | 100.0% |
| Values | Daily Returns |
FIRST NATIONAL FIN vs. OSB GROUP PLC
Performance |
| Timeline |
| FIRST NATIONAL FIN |
| OSB GROUP PLC |
FIRST NATIONAL and OSB GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST NATIONAL and OSB GROUP
The main advantage of trading using opposite FIRST NATIONAL and OSB GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST NATIONAL position performs unexpectedly, OSB GROUP 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 OSB GROUP will offset losses from the drop in OSB GROUP's long position.| FIRST NATIONAL vs. CITIC Telecom International | FIRST NATIONAL vs. SIDETRADE EO 1 | FIRST NATIONAL vs. Ribbon Communications | FIRST NATIONAL vs. ecotel communication ag |
| OSB GROUP vs. Mr Cooper Group | OSB GROUP vs. PennyMac Financial Services | OSB GROUP vs. Deutsche Pfandbriefbank AG | OSB GROUP vs. ELLINGTON FINL INC |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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