Correlation Between Axos Financial and First Horizon
Can any of the company-specific risk be diversified away by investing in both Axos Financial and First Horizon 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 Axos Financial and First Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and First Horizon National, you can compare the effects of market volatilities on Axos Financial and First Horizon 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 Axos Financial with a short position of First Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and First Horizon.
Diversification Opportunities for Axos Financial and First Horizon
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Axos and First is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and First Horizon National in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Horizon National and Axos Financial 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 Axos Financial are associated (or correlated) with First Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Horizon National has no effect on the direction of Axos Financial i.e., Axos Financial and First Horizon go up and down completely randomly.
Pair Corralation between Axos Financial and First Horizon
Allowing for the 90-day total investment horizon Axos Financial is expected to under-perform the First Horizon. In addition to that, Axos Financial is 1.38 times more volatile than First Horizon National. It trades about -0.08 of its total potential returns per unit of risk. First Horizon National is currently generating about 0.11 per unit of volatility. If you would invest 2,156 in First Horizon National on November 18, 2024 and sell it today you would earn a total of 54.00 from holding First Horizon National or generate 2.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. First Horizon National
Performance |
| Timeline |
| Axos Financial |
| First Horizon National |
Axos Financial and First Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and First Horizon
The main advantage of trading using opposite Axos Financial and First Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, First Horizon 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 Horizon will offset losses from the drop in First Horizon's long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| First Horizon vs. Zions Bancorporation | First Horizon vs. KeyCorp | First Horizon vs. Comerica | First Horizon vs. Western Alliance Bancorporation |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |