Correlation Between Axalta Coating and First Citizens
Can any of the company-specific risk be diversified away by investing in both Axalta Coating and First Citizens 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 Axalta Coating and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axalta Coating Systems and The First Citizens, you can compare the effects of market volatilities on Axalta Coating and First Citizens 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 Axalta Coating with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and First Citizens.
Diversification Opportunities for Axalta Coating and First Citizens
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Axalta and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Axalta Coating 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 Axalta Coating Systems are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of Axalta Coating i.e., Axalta Coating and First Citizens go up and down completely randomly.
Pair Corralation between Axalta Coating and First Citizens
Given the investment horizon of 90 days Axalta Coating Systems is expected to generate 0.97 times more return on investment than First Citizens. However, Axalta Coating Systems is 1.03 times less risky than First Citizens. It trades about 0.05 of its potential returns per unit of risk. The First Citizens is currently generating about -0.02 per unit of risk. If you would invest 3,167 in Axalta Coating Systems on August 31, 2024 and sell it today you would earn a total of 879.00 from holding Axalta Coating Systems or generate 27.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 27.54% |
| Values | Daily Returns |
Axalta Coating Systems vs. The First Citizens
Performance |
| Timeline |
| Axalta Coating Systems |
| First Citizens |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Axalta Coating and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and First Citizens
The main advantage of trading using opposite Axalta Coating and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating position performs unexpectedly, First Citizens 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 Citizens will offset losses from the drop in First Citizens' long position.| Axalta Coating vs. Avient Corp | Axalta Coating vs. H B Fuller | Axalta Coating vs. Quaker Chemical | Axalta Coating vs. Cabot |
| First Citizens vs. NRG Energy | First Citizens vs. Semtech | First Citizens vs. Allient | First Citizens vs. Flex |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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