Correlation Between Code Rebel and First America

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Can any of the company-specific risk be diversified away by investing in both Code Rebel and First America 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 Code Rebel and First America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Code Rebel Corp and First America Resources, you can compare the effects of market volatilities on Code Rebel and First America 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 Code Rebel with a short position of First America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Code Rebel and First America.

Diversification Opportunities for Code Rebel and First America

1.0
  Correlation Coefficient

No risk reduction

The 3 months correlation between Code and First is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Code Rebel Corp and First America Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First America Resources and Code Rebel 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 Code Rebel Corp are associated (or correlated) with First America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First America Resources has no effect on the direction of Code Rebel i.e., Code Rebel and First America go up and down completely randomly.

Pair Corralation between Code Rebel and First America

If you would invest  51.00  in First America Resources on October 31, 2025 and sell it today you would earn a total of  0.00  from holding First America Resources or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy96.77%
ValuesDaily Returns

Code Rebel Corp  vs.  First America Resources

 Performance 
       Timeline  
Code Rebel Corp 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Code Rebel Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Code Rebel is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
First America Resources 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days First America Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, First America is not utilizing all of its potentials. The newest stock price chaos, may contribute to medium-term losses for the stakeholders.

Code Rebel and First America Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Code Rebel and First America

The main advantage of trading using opposite Code Rebel and First America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Code Rebel position performs unexpectedly, First America 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 America will offset losses from the drop in First America's long position.
The idea behind Code Rebel Corp and First America Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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