Correlation Between Air Transport and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both Air Transport and FIRST SAVINGS 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 Air Transport and FIRST SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Transport Services and FIRST SAVINGS FINL, you can compare the effects of market volatilities on Air Transport and FIRST SAVINGS 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 Air Transport with a short position of FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Transport and FIRST SAVINGS.
Diversification Opportunities for Air Transport and FIRST SAVINGS
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and FIRST is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Air Transport Services and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL and Air Transport 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 Air Transport Services are associated (or correlated) with FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of Air Transport i.e., Air Transport and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between Air Transport and FIRST SAVINGS
Assuming the 90 days horizon Air Transport is expected to generate 2.4 times less return on investment than FIRST SAVINGS. But when comparing it to its historical volatility, Air Transport Services is 4.91 times less risky than FIRST SAVINGS. It trades about 0.1 of its potential returns per unit of risk. FIRST SAVINGS FINL is currently generating about 0.05 of returns per unit of risk over similar time horizon. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Air Transport Services vs. FIRST SAVINGS FINL
Performance |
| Timeline |
| Air Transport Services |
| FIRST SAVINGS FINL |
Air Transport and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Transport and FIRST SAVINGS
The main advantage of trading using opposite Air Transport and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Transport position performs unexpectedly, FIRST SAVINGS 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 SAVINGS will offset losses from the drop in FIRST SAVINGS's long position.| Air Transport vs. DALATA HOTEL | Air Transport vs. Easy Software AG | Air Transport vs. Hemisphere Energy Corp | Air Transport vs. COMPUTERSHARE |
| FIRST SAVINGS vs. POSBO UNSPADRS20YC1 | FIRST SAVINGS vs. Postal Savings Bank | FIRST SAVINGS vs. Truist Financial | FIRST SAVINGS vs. OVERSEA CHINUNSPADR2 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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