Correlation Between FirstService Corp and First National

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both FirstService Corp and First National 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 FirstService Corp and First National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FirstService Corp and First National Financial, you can compare the effects of market volatilities on FirstService Corp and First National 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 FirstService Corp with a short position of First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of FirstService Corp and First National.

Diversification Opportunities for FirstService Corp and First National

FirstServiceFirstDiversified AwayFirstServiceFirstDiversified Away100%
0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between FirstService and First is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding FirstService Corp and First National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Financial and FirstService Corp 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 FirstService Corp are associated (or correlated) with First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Financial has no effect on the direction of FirstService Corp i.e., FirstService Corp and First National go up and down completely randomly.

Pair Corralation between FirstService Corp and First National

Assuming the 90 days trading horizon FirstService Corp is expected to under-perform the First National. In addition to that, FirstService Corp is 1.32 times more volatile than First National Financial. It trades about -0.04 of its total potential returns per unit of risk. First National Financial is currently generating about -0.05 per unit of volatility. If you would invest  4,159  in First National Financial on November 13, 2024 and sell it today you would lose (111.00) from holding First National Financial or give up 2.67% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

FirstService Corp  vs.  First National Financial

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -505
JavaScript chart by amCharts 3.21.15FSV FN
       Timeline  
FirstService Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days FirstService Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, FirstService Corp is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb245250255260265270275
First National Financial 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days First National Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, First National is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb363738394041424344

FirstService Corp and First National Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.9-1.43-0.96-0.49-0.04760.360.831.31.772.24 0.10.20.30.40.5
JavaScript chart by amCharts 3.21.15FSV FN
       Returns  

Pair Trading with FirstService Corp and First National

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

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account