Correlation Between First Keystone and Susquehanna Community

Can any of the company-specific risk be diversified away by investing in both First Keystone and Susquehanna Community 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 Susquehanna Community 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 Susquehanna Community Financial, you can compare the effects of market volatilities on First Keystone and Susquehanna Community 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 Susquehanna Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Keystone and Susquehanna Community.

Diversification Opportunities for First Keystone and Susquehanna Community

-0.25

Correlation Coefficient

First Keystone  Susquehanna Community

Very good diversification

The 3 months correlation between First and Susquehanna is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding First Keystone Corp and Susquehanna Community Financia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susquehanna Community 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 Susquehanna Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susquehanna Community has no effect on the direction of First Keystone i.e., First Keystone and Susquehanna Community go up and down completely randomly.

Pair Corralation between First Keystone and Susquehanna Community

Given the investment horizon of 90 days First Keystone Corp is expected to generate 4.93 times more return on investment than Susquehanna Community. However, First Keystone is 4.93 times more volatile than Susquehanna Community Financial. It trades about 0.05 of its potential returns per unit of risk. Susquehanna Community Financial is currently generating about -0.19 per unit of risk. If you would invest  1,372  in First Keystone Corp on December 30, 2024 and sell it today you would earn a total of  100.00  from holding First Keystone Corp or generate 7.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

First Keystone Corp  vs.  Susquehanna Community Financia

First Keystone Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in First Keystone Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, First Keystone may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Susquehanna Community

Risk-Adjusted Performance

Very Weak

Over the last 90 days Susquehanna Community Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with First Keystone and Susquehanna Community

The main advantage of trading using opposite First Keystone and Susquehanna Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Keystone position performs unexpectedly, Susquehanna Community 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 Susquehanna Community will offset losses from the drop in Susquehanna Community's long position.

The idea behind First Keystone Corp and Susquehanna Community Financial 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.