Correlation Between Falcon Focus and First Investors
Can any of the company-specific risk be diversified away by investing in both Falcon Focus and First Investors 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 Falcon Focus and First Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Falcon Focus Scv and First Investors Total, you can compare the effects of market volatilities on Falcon Focus and First Investors 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 Falcon Focus with a short position of First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Falcon Focus and First Investors.
Diversification Opportunities for Falcon Focus and First Investors
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Falcon and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Falcon Focus Scv and First Investors Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Total and Falcon Focus 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 Falcon Focus Scv are associated (or correlated) with First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Total has no effect on the direction of Falcon Focus i.e., Falcon Focus and First Investors go up and down completely randomly.
Pair Corralation between Falcon Focus and First Investors
Assuming the 90 days horizon Falcon Focus Scv is expected to generate 1.63 times more return on investment than First Investors. However, Falcon Focus is 1.63 times more volatile than First Investors Total. It trades about 0.09 of its potential returns per unit of risk. First Investors Total is currently generating about -0.05 per unit of risk. If you would invest 947.00 in Falcon Focus Scv on September 3, 2024 and sell it today you would earn a total of 368.00 from holding Falcon Focus Scv or generate 38.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 22.22% |
| Values | Daily Returns |
Falcon Focus Scv vs. First Investors Total
Performance |
| Timeline |
| Falcon Focus Scv |
| First Investors Total |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Falcon Focus and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Falcon Focus and First Investors
The main advantage of trading using opposite Falcon Focus and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Falcon Focus position performs unexpectedly, First Investors 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 Investors will offset losses from the drop in First Investors' long position.| Falcon Focus vs. Blackrock Inflation Protected | Falcon Focus vs. T Rowe Price | Falcon Focus vs. Oklahoma College Savings | Falcon Focus vs. Inflation Protected Bond Fund |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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