Correlation Between Easy Software and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both Easy Software 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 Easy Software and FIRST SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easy Software AG and FIRST SAVINGS FINL, you can compare the effects of market volatilities on Easy Software 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 Easy Software with a short position of FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easy Software and FIRST SAVINGS.
Diversification Opportunities for Easy Software and FIRST SAVINGS
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Easy and FIRST is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Easy Software AG 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 Easy Software 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 Easy Software AG 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 Easy Software i.e., Easy Software and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between Easy Software and FIRST SAVINGS
Assuming the 90 days trading horizon Easy Software AG is expected to under-perform the FIRST SAVINGS. In addition to that, Easy Software is 1.45 times more volatile than FIRST SAVINGS FINL. It trades about -0.04 of its total potential returns per unit of risk. FIRST SAVINGS FINL is currently generating about 0.05 per unit of volatility. 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easy Software AG vs. FIRST SAVINGS FINL
Performance |
| Timeline |
| Easy Software AG |
| FIRST SAVINGS FINL |
Easy Software and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easy Software and FIRST SAVINGS
The main advantage of trading using opposite Easy Software and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easy Software 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.| Easy Software vs. Ebro Foods SA | Easy Software vs. PURE FOODS TASMANIA | Easy Software vs. Infrastrutture Wireless Italiane | Easy Software vs. Forsys Metals Corp |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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