Correlation Between FIRSTCASH HLDGS and Assicurazioni Generali

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Can any of the company-specific risk be diversified away by investing in both FIRSTCASH HLDGS and Assicurazioni Generali 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 FIRSTCASH HLDGS and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIRSTCASH HLDGS INCDL 01 and Assicurazioni Generali SpA, you can compare the effects of market volatilities on FIRSTCASH HLDGS and Assicurazioni Generali 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 FIRSTCASH HLDGS with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRSTCASH HLDGS and Assicurazioni Generali.

Diversification Opportunities for FIRSTCASH HLDGS and Assicurazioni Generali

-0.37
  Correlation Coefficient

Very good diversification

The 3 months correlation between FIRSTCASH and Assicurazioni is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding FIRSTCASH HLDGS INCDL 01 and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and FIRSTCASH HLDGS 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 FIRSTCASH HLDGS INCDL 01 are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of FIRSTCASH HLDGS i.e., FIRSTCASH HLDGS and Assicurazioni Generali go up and down completely randomly.

Pair Corralation between FIRSTCASH HLDGS and Assicurazioni Generali

Assuming the 90 days trading horizon FIRSTCASH HLDGS INCDL 01 is expected to generate 1.65 times more return on investment than Assicurazioni Generali. However, FIRSTCASH HLDGS is 1.65 times more volatile than Assicurazioni Generali SpA. It trades about 0.15 of its potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about -0.02 per unit of risk. If you would invest  11,940  in FIRSTCASH HLDGS INCDL 01 on August 15, 2025 and sell it today you would earn a total of  2,015  from holding FIRSTCASH HLDGS INCDL 01 or generate 16.88% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

FIRSTCASH HLDGS INCDL 01  vs.  Assicurazioni Generali SpA

 Performance 
       Timeline  
FIRSTCASH HLDGS INCDL 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in FIRSTCASH HLDGS INCDL 01 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, FIRSTCASH HLDGS reported solid returns over the last few months and may actually be approaching a breakup point.
Assicurazioni Generali 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Assicurazioni Generali SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Assicurazioni Generali is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

FIRSTCASH HLDGS and Assicurazioni Generali Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with FIRSTCASH HLDGS and Assicurazioni Generali

The main advantage of trading using opposite FIRSTCASH HLDGS and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRSTCASH HLDGS position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.
The idea behind FIRSTCASH HLDGS INCDL 01 and Assicurazioni Generali SpA 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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