Correlation Between FirstCash and Patria Latin
Can any of the company-specific risk be diversified away by investing in both FirstCash and Patria Latin 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 FirstCash and Patria Latin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FirstCash and Patria Latin American, you can compare the effects of market volatilities on FirstCash and Patria Latin 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 FirstCash with a short position of Patria Latin. Check out your portfolio center. Please also check ongoing floating volatility patterns of FirstCash and Patria Latin.
Diversification Opportunities for FirstCash and Patria Latin
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FirstCash and Patria is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding FirstCash and Patria Latin American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patria Latin American and FirstCash 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 FirstCash are associated (or correlated) with Patria Latin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patria Latin American has no effect on the direction of FirstCash i.e., FirstCash and Patria Latin go up and down completely randomly.
Pair Corralation between FirstCash and Patria Latin
If you would invest 10,755 in FirstCash on September 13, 2024 and sell it today you would earn a total of 41.50 from holding FirstCash or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
FirstCash vs. Patria Latin American
Performance |
| Timeline |
| FirstCash |
| Patria Latin American |
FirstCash and Patria Latin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FirstCash and Patria Latin
The main advantage of trading using opposite FirstCash and Patria Latin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FirstCash position performs unexpectedly, Patria Latin 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 Patria Latin will offset losses from the drop in Patria Latin's long position.| FirstCash vs. Visa Class A | FirstCash vs. PayPal Holdings | FirstCash vs. Upstart Holdings | FirstCash vs. Mastercard |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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