Correlation Between First State and Cellebrite
Can any of the company-specific risk be diversified away by investing in both First State and Cellebrite 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 Cellebrite 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 Cellebrite DI Equity, you can compare the effects of market volatilities on First State and Cellebrite 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 Cellebrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Cellebrite.
Diversification Opportunities for First State and Cellebrite
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Cellebrite is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Cellebrite DI Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI Equity 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 Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI Equity has no effect on the direction of First State i.e., First State and Cellebrite go up and down completely randomly.
Pair Corralation between First State and Cellebrite
If you would invest 515.00 in Cellebrite DI Equity on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Cellebrite DI Equity or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First State Financial vs. Cellebrite DI Equity
Performance |
| Timeline |
| First State Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cellebrite DI Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First State and Cellebrite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and Cellebrite
The main advantage of trading using opposite First State and Cellebrite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, Cellebrite 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 Cellebrite will offset losses from the drop in Cellebrite's long position.| First State vs. First Interstate BancSystem | First State vs. First Financial Bankshares | First State vs. Independent Bank Group | First State vs. CVB Financial |
| Cellebrite vs. Ryman Hospitality Properties | Cellebrite vs. Bt Brands | Cellebrite vs. Simpson Manufacturing | Cellebrite vs. Dave Busters Entertainment |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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