Correlation Between Bassett Furniture and First Citizens
Can any of the company-specific risk be diversified away by investing in both Bassett Furniture 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 Bassett Furniture and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bassett Furniture Industries and The First Citizens, you can compare the effects of market volatilities on Bassett Furniture 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 Bassett Furniture with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bassett Furniture and First Citizens.
Diversification Opportunities for Bassett Furniture and First Citizens
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bassett and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bassett Furniture Industries and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and Bassett Furniture 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 Bassett Furniture Industries 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 Bassett Furniture i.e., Bassett Furniture and First Citizens go up and down completely randomly.
Pair Corralation between Bassett Furniture and First Citizens
If you would invest 1,362 in Bassett Furniture Industries on August 29, 2024 and sell it today you would earn a total of 148.00 from holding Bassett Furniture Industries or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Bassett Furniture Industries vs. The First Citizens
Performance |
| Timeline |
| Bassett Furniture |
| First Citizens |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bassett Furniture and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bassett Furniture and First Citizens
The main advantage of trading using opposite Bassett Furniture and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bassett Furniture 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.| Bassett Furniture vs. Natuzzi SpA | Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Hamilton Beach Brands | Bassett Furniture vs. La Z Boy Incorporated |
| First Citizens vs. Universal Technical Institute | First Citizens vs. Coursera | First Citizens vs. Bright Scholar Education | First Citizens vs. Udemy Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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