Correlation Between First State and Stack Capital
Can any of the company-specific risk be diversified away by investing in both First State and Stack 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 Stack 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 Stack Capital Group, you can compare the effects of market volatilities on First State and Stack 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 Stack Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Stack Capital.
Diversification Opportunities for First State and Stack Capital
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Stack is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Stack Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stack Capital Group 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 Stack Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stack Capital Group has no effect on the direction of First State i.e., First State and Stack Capital go up and down completely randomly.
Pair Corralation between First State and Stack Capital
Given the investment horizon of 90 days First State is expected to generate 1.13 times less return on investment than Stack Capital. In addition to that, First State is 5.41 times more volatile than Stack Capital Group. It trades about 0.04 of its total potential returns per unit of risk. Stack Capital Group is currently generating about 0.22 per unit of volatility. If you would invest 889.00 in Stack Capital Group on November 8, 2025 and sell it today you would earn a total of 469.00 from holding Stack Capital Group or generate 52.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First State Financial vs. Stack Capital Group
Performance |
| Timeline |
| First State Financial |
| Stack Capital Group |
First State and Stack Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and Stack Capital
The main advantage of trading using opposite First State and Stack Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, Stack 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 Stack Capital will offset losses from the drop in Stack 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 |
| Stack Capital vs. VietNam Holding Limited | Stack Capital vs. Agronomics Limited | Stack Capital vs. Bank Utica Ny | Stack Capital vs. First Acceptance Corp |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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