Correlation Between FIRST SAVINGS and CHRYSALIS INVESTMENTS
Can any of the company-specific risk be diversified away by investing in both FIRST SAVINGS and CHRYSALIS INVESTMENTS 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 SAVINGS and CHRYSALIS INVESTMENTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRST SAVINGS FINL and CHRYSALIS INVESTMENTS LTD, you can compare the effects of market volatilities on FIRST SAVINGS and CHRYSALIS INVESTMENTS 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 SAVINGS with a short position of CHRYSALIS INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SAVINGS and CHRYSALIS INVESTMENTS.
Diversification Opportunities for FIRST SAVINGS and CHRYSALIS INVESTMENTS
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between FIRST and CHRYSALIS is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SAVINGS FINL and CHRYSALIS INVESTMENTS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHRYSALIS INVESTMENTS LTD and FIRST SAVINGS 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 SAVINGS FINL are associated (or correlated) with CHRYSALIS INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHRYSALIS INVESTMENTS LTD has no effect on the direction of FIRST SAVINGS i.e., FIRST SAVINGS and CHRYSALIS INVESTMENTS go up and down completely randomly.
Pair Corralation between FIRST SAVINGS and CHRYSALIS INVESTMENTS
Assuming the 90 days horizon FIRST SAVINGS FINL is expected to generate 1.57 times more return on investment than CHRYSALIS INVESTMENTS. However, FIRST SAVINGS is 1.57 times more volatile than CHRYSALIS INVESTMENTS LTD. It trades about 0.05 of its potential returns per unit of risk. CHRYSALIS INVESTMENTS LTD is currently generating about -0.46 per unit of risk. If you would invest 2,200 in FIRST SAVINGS FINL on October 28, 2024 and sell it today you would earn a total of 40.00 from holding FIRST SAVINGS FINL or generate 1.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIRST SAVINGS FINL vs. CHRYSALIS INVESTMENTS LTD
Performance |
| Timeline |
| FIRST SAVINGS FINL |
| CHRYSALIS INVESTMENTS LTD |
FIRST SAVINGS and CHRYSALIS INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SAVINGS and CHRYSALIS INVESTMENTS
The main advantage of trading using opposite FIRST SAVINGS and CHRYSALIS INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SAVINGS position performs unexpectedly, CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS will offset losses from the drop in CHRYSALIS INVESTMENTS's long position.| FIRST SAVINGS vs. POSBO UNSPADRS20YC1 | FIRST SAVINGS vs. Postal Savings Bank | FIRST SAVINGS vs. Truist Financial | FIRST SAVINGS vs. OVERSEA CHINUNSPADR2 |
| CHRYSALIS INVESTMENTS vs. VITEC SOFTWARE GROUP | CHRYSALIS INVESTMENTS vs. Guidewire Software | CHRYSALIS INVESTMENTS vs. FORMPIPE SOFTWARE AB | CHRYSALIS INVESTMENTS vs. Ultra Clean Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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