Correlation Between First State and Public Service
Can any of the company-specific risk be diversified away by investing in both First State and Public Service 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 Public Service 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 Public Service, you can compare the effects of market volatilities on First State and Public Service 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 Public Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Public Service.
Diversification Opportunities for First State and Public Service
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Public is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Public Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Service 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 Public Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Service has no effect on the direction of First State i.e., First State and Public Service go up and down completely randomly.
Pair Corralation between First State and Public Service
If you would invest 7,586 in Public Service on October 28, 2024 and sell it today you would earn a total of 14.00 from holding Public Service or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
First State Financial vs. Public Service
Performance |
| Timeline |
| First State Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Public Service |
First State and Public Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and Public Service
The main advantage of trading using opposite First State and Public Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, Public Service 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 Public Service will offset losses from the drop in Public Service'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 |
| Public Service vs. Trio Tech International | Public Service vs. Eltek | Public Service vs. Everspin Technologies | Public Service vs. Skyline |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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