Correlation Between First National and Intrusion

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

Diversification Opportunities for First National and Intrusion

-0.73
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between First and Intrusion is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding First National of and Intrusion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intrusion and First National 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 National of are associated (or correlated) with Intrusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intrusion has no effect on the direction of First National i.e., First National and Intrusion go up and down completely randomly.

Pair Corralation between First National and Intrusion

Given the investment horizon of 90 days First National of is expected to generate 0.28 times more return on investment than Intrusion. However, First National of is 3.51 times less risky than Intrusion. It trades about 0.12 of its potential returns per unit of risk. Intrusion is currently generating about -0.1 per unit of risk. If you would invest  1,400,000  in First National of on October 9, 2025 and sell it today you would earn a total of  150,000  from holding First National of or generate 10.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy98.39%
ValuesDaily Returns

First National of  vs.  Intrusion

 Performance 
       Timeline  
First National 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in First National of are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, First National may actually be approaching a critical reversion point that can send shares even higher in February 2026.
Intrusion 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Intrusion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long term up-swing for the company investors.

First National and Intrusion Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with First National and Intrusion

The main advantage of trading using opposite First National and Intrusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National position performs unexpectedly, Intrusion 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 Intrusion will offset losses from the drop in Intrusion's long position.
The idea behind First National of and Intrusion 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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