Correlation Between First Of and American National
Can any of the company-specific risk be diversified away by investing in both First Of and American National 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 Of and American National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First of Long and American National Bankshares, you can compare the effects of market volatilities on First Of and American National 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 Of with a short position of American National. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Of and American National.
Diversification Opportunities for First Of and American National
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and American is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding First of Long and American National Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American National and First Of 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 of Long are associated (or correlated) with American National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American National has no effect on the direction of First Of i.e., First Of and American National go up and down completely randomly.
Pair Corralation between First Of and American National
Given the investment horizon of 90 days First Of is expected to generate 1.62 times less return on investment than American National. But when comparing it to its historical volatility, First of Long is 1.01 times less risky than American National. It trades about 0.05 of its potential returns per unit of risk. American National Bankshares is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,032 in American National Bankshares on September 2, 2024 and sell it today you would earn a total of 128.00 from holding American National Bankshares or generate 4.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 8.06% |
| Values | Daily Returns |
First of Long vs. American National Bankshares
Performance |
| Timeline |
| First of Long |
| American National |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Of and American National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Of and American National
The main advantage of trading using opposite First Of and American National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Of position performs unexpectedly, American National 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 American National will offset losses from the drop in American National's long position.| First Of vs. Affinity Bancshares | First Of vs. Southern California Bancorp | First Of vs. Auburn National Bancorporation | First Of vs. BayCom Corp |
| American National vs. First Northwest Bancorp | American National vs. Community West Bancshares | American National vs. First Financial Northwest | American National vs. Great Southern 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |