First American Correlations

FAF Stock

USD 65.41 0.07 0.11%

The current 90-days correlation between First American and Fidelity National Financial is 0.85 (i.e., Very poor diversification). The correlation of First American is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

First American Correlation With Market

Very weak diversification

The correlation between First American and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding First American and DJI in the same portfolio, assuming nothing else is changed.

Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First American. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.

For more detail on how to invest in First Stock please use our How to Invest in First American guide.

Moving together with First Stock

0.87	ACT	Enact Holdings	Pair Corr
0.79	AXS	AXIS Capital Holdings	Pair Corr
0.61	EIG	Employers Holdings	Pair Corr
0.7	FNF	Fidelity National Sell-off Trend	Pair Corr
0.76	AXS-PE	AXIS Capital Holdings	Pair Corr
0.69	RYAN	Ryan Specialty Group	Pair Corr
0.61	TIPT	Tiptree	Pair Corr

Moving against First Stock

0.34	ICCH	ICC Holdings	Pair Corr
0.37	LC	LendingClub Corp Sell-off Trend	Pair Corr
0.35	KB	KB Financial Group	Pair Corr

Related Correlations Analysis

	FNF	STC	ORI	AFG	RGA
FNF		0.58	0.81	-0.43	-0.58	FNF
STC	0.58		0.26	-0.17	-0.61	STC
ORI	0.81	0.26		-0.58	-0.39	ORI
AFG	-0.43	-0.17	-0.58		0.69	AFG
RGA	-0.58	-0.61	-0.39	0.69		RGA
	FNF	STC	ORI	AFG	RGA

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

ORI	+ 0.81	FNF
RGA	+ 0.69	AFG
STC	+ 0.58	FNF
ORI	+ 0.26	STC

High negative correlations

RGA	- 0.61	STC
AFG	- 0.58	ORI
RGA	- 0.58	FNF
AFG	- 0.43	FNF
RGA	- 0.39	ORI
AFG	- 0.17	STC

Risk-Adjusted Indicators

There is a big difference between First Stock performing well and First American Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze First American's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
FNF	1.11	0.18	0.13	0.19	1.35	(1.17)	2.50	(2.24)	6.45
STC	1.37	0.02	0.00	(0.05)	0.00	0.00	2.91	(2.46)	6.07
ORI	0.95	0.21	0.16	0.20	1.26	(0.94)	2.16	(2.20)	6.06
AFG	1.00	(0.11)	0.00	(0.36)	0.00	0.00	1.80	(1.94)	8.90
RGA	1.37	(0.04)	0.00	(0.11)	0.00	0.00	2.55	(3.43)	12.10

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