Correlation Between TRON and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both TRON and FIRST SAVINGS 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 TRON and FIRST SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRON and FIRST SAVINGS FINL, you can compare the effects of market volatilities on TRON and FIRST SAVINGS 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 TRON with a short position of FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRON and FIRST SAVINGS.
Diversification Opportunities for TRON and FIRST SAVINGS
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TRON and FIRST is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding TRON and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL and TRON 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 TRON are associated (or correlated) with FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of TRON i.e., TRON and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between TRON and FIRST SAVINGS
Assuming the 90 days trading horizon TRON is expected to under-perform the FIRST SAVINGS. In addition to that, TRON is 1.3 times more volatile than FIRST SAVINGS FINL. It trades about -0.25 of its total potential returns per unit of risk. FIRST SAVINGS FINL is currently generating about -0.2 per unit of volatility. If you would invest 2,604 in FIRST SAVINGS FINL on October 12, 2024 and sell it today you would lose (264.00) from holding FIRST SAVINGS FINL or give up 10.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 80.95% |
| Values | Daily Returns |
TRON vs. FIRST SAVINGS FINL
Performance |
| Timeline |
| TRON |
| FIRST SAVINGS FINL |
TRON and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRON and FIRST SAVINGS
The main advantage of trading using opposite TRON and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRON position performs unexpectedly, FIRST SAVINGS 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 SAVINGS will offset losses from the drop in FIRST SAVINGS's long position.The idea behind TRON and FIRST SAVINGS FINL 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.| FIRST SAVINGS vs. TRAINLINE PLC LS | FIRST SAVINGS vs. TITANIUM TRANSPORTGROUP | FIRST SAVINGS vs. Cleanaway Waste Management | FIRST SAVINGS vs. TYSON FOODS A |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |