Correlation Between FIRST SAVINGS and Gaming
Can any of the company-specific risk be diversified away by investing in both FIRST SAVINGS and Gaming 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 Gaming 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 Gaming and Leisure, you can compare the effects of market volatilities on FIRST SAVINGS and Gaming 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 Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST SAVINGS and Gaming.
Diversification Opportunities for FIRST SAVINGS and Gaming
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIRST and Gaming is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding FIRST SAVINGS FINL and Gaming and Leisure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaming and Leisure 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 Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaming and Leisure has no effect on the direction of FIRST SAVINGS i.e., FIRST SAVINGS and Gaming go up and down completely randomly.
Pair Corralation between FIRST SAVINGS and Gaming
Assuming the 90 days horizon FIRST SAVINGS FINL is expected to under-perform the Gaming. In addition to that, FIRST SAVINGS is 2.26 times more volatile than Gaming and Leisure. It trades about -0.19 of its total potential returns per unit of risk. Gaming and Leisure is currently generating about -0.11 per unit of volatility. If you would invest 4,803 in Gaming and Leisure on October 30, 2024 and sell it today you would lose (260.00) from holding Gaming and Leisure or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIRST SAVINGS FINL vs. Gaming and Leisure
Performance |
| Timeline |
| FIRST SAVINGS FINL |
| Gaming and Leisure |
FIRST SAVINGS and Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIRST SAVINGS and Gaming
The main advantage of trading using opposite FIRST SAVINGS and Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST SAVINGS position performs unexpectedly, Gaming 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 Gaming will offset losses from the drop in Gaming's long position.| FIRST SAVINGS vs. Brockhaus Capital Management | FIRST SAVINGS vs. MAVEN WIRELESS SWEDEN | FIRST SAVINGS vs. Coor Service Management | FIRST SAVINGS vs. Q2M Managementberatung 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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