Correlation Between First State and Outfront Media
Can any of the company-specific risk be diversified away by investing in both First State and Outfront Media 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 Outfront Media 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 Outfront Media, you can compare the effects of market volatilities on First State and Outfront Media 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 Outfront Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Outfront Media.
Diversification Opportunities for First State and Outfront Media
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Outfront is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Outfront Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Outfront Media 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 Outfront Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Outfront Media has no effect on the direction of First State i.e., First State and Outfront Media go up and down completely randomly.
Pair Corralation between First State and Outfront Media
Given the investment horizon of 90 days First State Financial is expected to generate 11.3 times more return on investment than Outfront Media. However, First State is 11.3 times more volatile than Outfront Media. It trades about 0.03 of its potential returns per unit of risk. Outfront Media is currently generating about 0.14 per unit of risk. If you would invest 3.69 in First State Financial on November 18, 2025 and sell it today you would lose (1.74) from holding First State Financial or give up 47.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
First State Financial vs. Outfront Media
Performance |
| Timeline |
| First State Financial |
| Outfront Media |
First State and Outfront Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and Outfront Media
The main advantage of trading using opposite First State and Outfront Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, Outfront Media 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 Outfront Media will offset losses from the drop in Outfront Media's long position.| First State vs. First Northern Community | First State vs. TISCO Financial Group | First State vs. Merchants Financial Group | First State vs. First Farmers and |
| Outfront Media vs. Highwoods Properties | Outfront Media vs. LXP Industrial Trust | Outfront Media vs. Vornado Realty Trust | Outfront Media vs. Rayonier |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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