Correlation Between First Keystone and Roth CH
Can any of the company-specific risk be diversified away by investing in both First Keystone and Roth CH 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 Keystone and Roth CH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Keystone Corp and Roth CH Acquisition, you can compare the effects of market volatilities on First Keystone and Roth CH 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 Keystone with a short position of Roth CH. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Keystone and Roth CH.
Diversification Opportunities for First Keystone and Roth CH
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Roth is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding First Keystone Corp and Roth CH Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roth CH Acquisition and First Keystone 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 Keystone Corp are associated (or correlated) with Roth CH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roth CH Acquisition has no effect on the direction of First Keystone i.e., First Keystone and Roth CH go up and down completely randomly.
Pair Corralation between First Keystone and Roth CH
Given the investment horizon of 90 days First Keystone is expected to generate 32.32 times less return on investment than Roth CH. But when comparing it to its historical volatility, First Keystone Corp is 20.75 times less risky than Roth CH. It trades about 0.07 of its potential returns per unit of risk. Roth CH Acquisition is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Roth CH Acquisition on September 26, 2025 and sell it today you would earn a total of 179.00 from holding Roth CH Acquisition or generate 1627.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
First Keystone Corp vs. Roth CH Acquisition
Performance |
| Timeline |
| First Keystone Corp |
| Roth CH Acquisition |
First Keystone and Roth CH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Keystone and Roth CH
The main advantage of trading using opposite First Keystone and Roth CH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Keystone position performs unexpectedly, Roth CH 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 Roth CH will offset losses from the drop in Roth CH's long position.| First Keystone vs. American Bank | First Keystone vs. United Bancshares | First Keystone vs. PSB Holdings | First Keystone vs. Croghan Bancshares |
| Roth CH vs. Legacy Ventures International | Roth CH vs. Marblegate Capital | Roth CH vs. Saxon Capital Group | Roth CH vs. Goal Acquisitions Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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