Correlation Between First Capital and R-Three Technologies
Can any of the company-specific risk be diversified away by investing in both First Capital and R-Three Technologies 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 R-Three Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Capital and R Three Technologies, you can compare the effects of market volatilities on First Capital and R-Three Technologies 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 R-Three Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Capital and R-Three Technologies.
Diversification Opportunities for First Capital and R-Three Technologies
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and R-Three is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding First Capital and R Three Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on R Three Technologies 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 R-Three Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of R Three Technologies has no effect on the direction of First Capital i.e., First Capital and R-Three Technologies go up and down completely randomly.
Pair Corralation between First Capital and R-Three Technologies
Given the investment horizon of 90 days First Capital is expected to generate 1.21 times less return on investment than R-Three Technologies. But when comparing it to its historical volatility, First Capital is 3.74 times less risky than R-Three Technologies. It trades about 0.11 of its potential returns per unit of risk. R Three Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.03 in R Three Technologies on November 10, 2025 and sell it today you would lose (0.01) from holding R Three Technologies or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.38% |
| Values | Daily Returns |
First Capital vs. R Three Technologies
Performance |
| Timeline |
| First Capital |
| R Three Technologies |
First Capital and R-Three Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Capital and R-Three Technologies
The main advantage of trading using opposite First Capital and R-Three Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Capital position performs unexpectedly, R-Three Technologies 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 R-Three Technologies will offset losses from the drop in R-Three Technologies' long position.| First Capital vs. Landmark Bancorp | First Capital vs. CF Bankshares | First Capital vs. Finward Bancorp | First Capital vs. Eagle Bancorp Montana |
| R-Three Technologies vs. Koios Beverage Corp | R-Three Technologies vs. Reynaldos Mexican Food | R-Three Technologies vs. Big Lots | R-Three Technologies vs. Avenir Wellness Solutions |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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