Correlation Between First State and Ratos AB
Can any of the company-specific risk be diversified away by investing in both First State and Ratos AB 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 Ratos AB 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 Ratos AB, you can compare the effects of market volatilities on First State and Ratos AB 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 Ratos AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Ratos AB.
Diversification Opportunities for First State and Ratos AB
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Ratos is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Ratos AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratos AB 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 Ratos AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratos AB has no effect on the direction of First State i.e., First State and Ratos AB go up and down completely randomly.
Pair Corralation between First State and Ratos AB
If you would invest 3.69 in First State Financial on November 17, 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 | 1.59% |
| Values | Daily Returns |
First State Financial vs. Ratos AB
Performance |
| Timeline |
| First State Financial |
| Ratos AB |
Risk-Adjusted Performance
Weakest
Weak | Strong |
First State and Ratos AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and Ratos AB
The main advantage of trading using opposite First State and Ratos AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, Ratos AB 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 Ratos AB will offset losses from the drop in Ratos AB's long position.| First State vs. First Republic Bank | First State vs. BioCube | First State vs. Trend Exploration I | First State vs. Eastern Goldfields |
| Ratos AB vs. Guardian Capital Group | Ratos AB vs. Uniteds Limited | Ratos AB vs. Draper Esprit plc | Ratos AB vs. IOOF Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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