Correlation Between First Capital and Network Media
Can any of the company-specific risk be diversified away by investing in both First Capital and Network Media 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 First Capital and Network Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Capital and Network Media Group, you can compare the effects of market volatilities on First Capital and Network Media 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 First Capital with a short position of Network Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Capital and Network Media.
Diversification Opportunities for First Capital and Network Media
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Network is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding First Capital and Network Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network Media Group and First Capital 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 First Capital are associated (or correlated) with Network Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network Media Group has no effect on the direction of First Capital i.e., First Capital and Network Media go up and down completely randomly.
Pair Corralation between First Capital and Network Media
Given the investment horizon of 90 days First Capital is expected to generate 0.79 times more return on investment than Network Media. However, First Capital is 1.27 times less risky than Network Media. It trades about 0.18 of its potential returns per unit of risk. Network Media Group is currently generating about 0.02 per unit of risk. If you would invest 4,379 in First Capital on November 8, 2025 and sell it today you would earn a total of 1,971 from holding First Capital or generate 45.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.77% |
| Values | Daily Returns |
First Capital vs. Network Media Group
Performance |
| Timeline |
| First Capital |
| Network Media Group |
First Capital and Network Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Capital and Network Media
The main advantage of trading using opposite First Capital and Network Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Capital position performs unexpectedly, Network Media 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 Network Media will offset losses from the drop in Network Media's long position.| First Capital vs. Landmark Bancorp | First Capital vs. CF Bankshares | First Capital vs. Finward Bancorp | First Capital vs. Eagle Bancorp Montana |
| Network Media vs. HeadsUp Entertainment International | Network Media vs. Big Screen Entertainment | Network Media vs. Farmhouse | Network Media vs. Legible |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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