Correlation Between First National and Austin Resources
Can any of the company-specific risk be diversified away by investing in both First National and Austin Resources 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 National and Austin Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First National Financial and Austin Resources, you can compare the effects of market volatilities on First National and Austin Resources 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 National with a short position of Austin Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and Austin Resources.
Diversification Opportunities for First National and Austin Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Austin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First National Financial and Austin Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austin Resources and First National 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 National Financial are associated (or correlated) with Austin Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austin Resources has no effect on the direction of First National i.e., First National and Austin Resources go up and down completely randomly.
Pair Corralation between First National and Austin Resources
If you would invest 1,485 in First National Financial on September 13, 2024 and sell it today you would earn a total of 60.00 from holding First National Financial or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
First National Financial vs. Austin Resources
Performance |
| Timeline |
| First National Financial |
| Austin Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First National and Austin Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and Austin Resources
The main advantage of trading using opposite First National and Austin Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National position performs unexpectedly, Austin Resources 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 Austin Resources will offset losses from the drop in Austin Resources' long position.| First National vs. Economic Investment Trust | First National vs. Stampede Drilling | First National vs. Altair Resources | First National vs. Pembina Pipeline Corp |
| Austin Resources vs. Osisko Metals | Austin Resources vs. Lion One Metals | Austin Resources vs. Arbor Metals Corp | Austin Resources vs. Partners Value Investments |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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