Correlation Between Meta Platforms and First America

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Can any of the company-specific risk be diversified away by investing in both Meta Platforms and First America 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 Meta Platforms and First America into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meta Platforms and First America Resources, you can compare the effects of market volatilities on Meta Platforms and First America 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 Meta Platforms with a short position of First America. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meta Platforms and First America.

Diversification Opportunities for Meta Platforms and First America

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Meta and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meta Platforms and First America Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First America Resources and Meta Platforms 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 Meta Platforms are associated (or correlated) with First America. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First America Resources has no effect on the direction of Meta Platforms i.e., Meta Platforms and First America go up and down completely randomly.

Pair Corralation between Meta Platforms and First America

If you would invest  63,719  in Meta Platforms on November 2, 2025 and sell it today you would earn a total of  7,931  from holding Meta Platforms or generate 12.45% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.83%
ValuesDaily Returns

Meta Platforms  vs.  First America Resources

 Performance 
       Timeline  
Meta Platforms 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Meta Platforms are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Meta Platforms sustained solid returns over the last few months and may actually be approaching a breakup point.
First America Resources 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days First America Resources has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively steady basic indicators, First America is not utilizing all of its potentials. The newest stock price chaos, may contribute to medium-term losses for the stakeholders.

Meta Platforms and First America Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Meta Platforms and First America

The main advantage of trading using opposite Meta Platforms and First America positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meta Platforms position performs unexpectedly, First America 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 First America will offset losses from the drop in First America's long position.
The idea behind Meta Platforms and First America Resources pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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