Correlation Between First Ottawa and First Citizens
Can any of the company-specific risk be diversified away by investing in both First Ottawa and First Citizens 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 Ottawa and First Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ottawa Bancshares and The First Citizens, you can compare the effects of market volatilities on First Ottawa and First Citizens 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 Ottawa with a short position of First Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ottawa and First Citizens.
Diversification Opportunities for First Ottawa and First Citizens
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ottawa Bancshares and The First Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Citizens and First Ottawa 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 Ottawa Bancshares are associated (or correlated) with First Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Citizens has no effect on the direction of First Ottawa i.e., First Ottawa and First Citizens go up and down completely randomly.
Pair Corralation between First Ottawa and First Citizens
If you would invest 10,860 in First Ottawa Bancshares on August 25, 2024 and sell it today you would earn a total of 1,141 from holding First Ottawa Bancshares or generate 10.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.22% |
| Values | Daily Returns |
First Ottawa Bancshares vs. The First Citizens
Performance |
| Timeline |
| First Ottawa Bancshares |
| First Citizens |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First Ottawa and First Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ottawa and First Citizens
The main advantage of trading using opposite First Ottawa and First Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ottawa position performs unexpectedly, First Citizens 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 Citizens will offset losses from the drop in First Citizens' long position.| First Ottawa vs. Century Next Financial | First Ottawa vs. Citizens Financial Corp | First Ottawa vs. Triad Business Bank | First Ottawa vs. First Bankers Trustshares |
| First Citizens vs. Bassett Furniture Industries | First Citizens vs. Cardinal Health | First Citizens vs. Viemed Healthcare | First Citizens vs. Hooker Furniture |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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