Correlation Between First Horizon and First Horizon
Can any of the company-specific risk be diversified away by investing in both First Horizon and First Horizon 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 Horizon and First Horizon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Horizon and First Horizon, you can compare the effects of market volatilities on First Horizon and First Horizon 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 Horizon with a short position of First Horizon. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Horizon and First Horizon.
Diversification Opportunities for First Horizon and First Horizon
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and First is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding First Horizon and First Horizon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Horizon and First Horizon 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 Horizon are associated (or correlated) with First Horizon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Horizon has no effect on the direction of First Horizon i.e., First Horizon and First Horizon go up and down completely randomly.
Pair Corralation between First Horizon and First Horizon
Assuming the 90 days trading horizon First Horizon is expected to generate 0.73 times more return on investment than First Horizon. However, First Horizon is 1.37 times less risky than First Horizon. It trades about -0.01 of its potential returns per unit of risk. First Horizon is currently generating about -0.21 per unit of risk. If you would invest 2,513 in First Horizon on September 13, 2024 and sell it today you would lose (3.00) from holding First Horizon or give up 0.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Horizon vs. First Horizon
Performance |
| Timeline |
| First Horizon |
| First Horizon |
First Horizon and First Horizon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Horizon and First Horizon
The main advantage of trading using opposite First Horizon and First Horizon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Horizon position performs unexpectedly, First Horizon 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 Horizon will offset losses from the drop in First Horizon's long position.| First Horizon vs. First Horizon | First Horizon vs. First Horizon | First Horizon vs. First Horizon | First Horizon vs. Customers Bancorp |
| First Horizon vs. First Horizon | First Horizon vs. First Horizon | First Horizon vs. Citizens Financial Group | First Horizon vs. Customers Bancorp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |