Correlation Between First State and FS Energy
Can any of the company-specific risk be diversified away by investing in both First State and FS Energy 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 FS Energy 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 FS Energy And, you can compare the effects of market volatilities on First State and FS Energy 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 FS Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and FS Energy.
Diversification Opportunities for First State and FS Energy
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and FSEN is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and FS Energy And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FS Energy And 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 FS Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FS Energy And has no effect on the direction of First State i.e., First State and FS Energy go up and down completely randomly.
Pair Corralation between First State and FS Energy
If you would invest 3.69 in First State Financial on November 8, 2025 and sell it today you would lose (1.59) from holding First State Financial or give up 43.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 18.03% |
| Values | Daily Returns |
First State Financial vs. FS Energy And
Performance |
| Timeline |
| First State Financial |
| FS Energy And |
Risk-Adjusted Performance
Weakest
Weak | Strong |
First State and FS Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and FS Energy
The main advantage of trading using opposite First State and FS Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, FS Energy 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 FS Energy will offset losses from the drop in FS Energy's long position.| First State vs. First Republic Bank | First State vs. BioCube | First State vs. Trend Exploration I | First State vs. Eastern Goldfields |
| FS Energy vs. Nuveen New Jersey | FS Energy vs. Blackrock Muniholdings New | FS Energy vs. FS KKR Capital | FS Energy vs. Apollo Global Management |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |