Correlation Between First State and Intrepid Capital
Can any of the company-specific risk be diversified away by investing in both First State and Intrepid Capital 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 Intrepid Capital 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 Intrepid Capital, you can compare the effects of market volatilities on First State and Intrepid Capital 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 Intrepid Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Intrepid Capital.
Diversification Opportunities for First State and Intrepid Capital
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Intrepid is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Intrepid Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrepid Capital 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 Intrepid Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrepid Capital has no effect on the direction of First State i.e., First State and Intrepid Capital go up and down completely randomly.
Pair Corralation between First State and Intrepid Capital
Given the investment horizon of 90 days First State Financial is expected to generate 7.41 times more return on investment than Intrepid Capital. However, First State is 7.41 times more volatile than Intrepid Capital. It trades about 0.04 of its potential returns per unit of risk. Intrepid Capital is currently generating about 0.13 per unit of risk. If you would invest 3.69 in First State Financial on November 10, 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 | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
First State Financial vs. Intrepid Capital
Performance |
| Timeline |
| First State Financial |
| Intrepid Capital |
First State and Intrepid Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and Intrepid Capital
The main advantage of trading using opposite First State and Intrepid Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, Intrepid Capital 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 Intrepid Capital will offset losses from the drop in Intrepid Capital's long position.| First State vs. First Republic Bank | First State vs. BioCube | First State vs. Trend Exploration I | First State vs. Eastern Goldfields |
| Intrepid Capital vs. Virtus Investment Partners | Intrepid Capital vs. General American Investors | Intrepid Capital vs. Central Securities | Intrepid Capital vs. Horizon Kinetics Holding |
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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