Correlation Between First State and AMSWA Old
Can any of the company-specific risk be diversified away by investing in both First State and AMSWA Old 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 State and AMSWA Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First State Financial and AMSWA Old, you can compare the effects of market volatilities on First State and AMSWA Old 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 State with a short position of AMSWA Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and AMSWA Old.
Diversification Opportunities for First State and AMSWA Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and AMSWA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and AMSWA Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMSWA Old and First State 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 State Financial are associated (or correlated) with AMSWA Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMSWA Old has no effect on the direction of First State i.e., First State and AMSWA Old go up and down completely randomly.
Pair Corralation between First State and AMSWA Old
If you would invest (100.00) in AMSWA Old on November 18, 2024 and sell it today you would earn a total of 100.00 from holding AMSWA Old or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First State Financial vs. AMSWA Old
Performance |
| Timeline |
| First State Financial |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| AMSWA Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
First State and AMSWA Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and AMSWA Old
The main advantage of trading using opposite First State and AMSWA Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, AMSWA Old 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 AMSWA Old will offset losses from the drop in AMSWA Old's long position.| First State vs. First Interstate BancSystem | First State vs. First Financial Bankshares | First State vs. CVB Financial | First State vs. Eagle Bancorp Montana |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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