Correlation Between First Keystone and Western Asset
Can any of the company-specific risk be diversified away by investing in both First Keystone and Western Asset 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 Keystone and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Keystone Corp and Western Asset Global, you can compare the effects of market volatilities on First Keystone and Western Asset 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 Keystone with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Keystone and Western Asset.
Diversification Opportunities for First Keystone and Western Asset
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Western is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding First Keystone Corp and Western Asset Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Global and First Keystone 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 Keystone Corp are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Global has no effect on the direction of First Keystone i.e., First Keystone and Western Asset go up and down completely randomly.
Pair Corralation between First Keystone and Western Asset
Given the investment horizon of 90 days First Keystone Corp is expected to generate 5.99 times more return on investment than Western Asset. However, First Keystone is 5.99 times more volatile than Western Asset Global. It trades about 0.04 of its potential returns per unit of risk. Western Asset Global is currently generating about 0.17 per unit of risk. If you would invest 1,375 in First Keystone Corp on December 2, 2024 and sell it today you would earn a total of 35.00 from holding First Keystone Corp or generate 2.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
First Keystone Corp vs. Western Asset Global
Performance |
Timeline |
First Keystone Corp |
Western Asset Global |
First Keystone and Western Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Keystone and Western Asset
The main advantage of trading using opposite First Keystone and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Keystone position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.First Keystone vs. Citizens Bancorp Investment | First Keystone vs. Greenville Federal Financial | First Keystone vs. Oak Ridge Financial | First Keystone vs. Main Street Financial |
Western Asset vs. Western Asset High | Western Asset vs. Western Asset Global | Western Asset vs. European Equity Closed | Western Asset vs. Doubleline Opportunistic Credit |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Transaction History View history of all your transactions and understand their impact on performance |