Correlation Between First National and Russell Investments
Can any of the company-specific risk be diversified away by investing in both First National and Russell Investments 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 Russell Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First National Financial and Russell Investments Global, you can compare the effects of market volatilities on First National and Russell Investments 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 Russell Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and Russell Investments.
Diversification Opportunities for First National and Russell Investments
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and Russell is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding First National Financial and Russell Investments Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Russell Investments 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 Financial are associated (or correlated) with Russell Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Russell Investments has no effect on the direction of First National i.e., First National and Russell Investments go up and down completely randomly.
Pair Corralation between First National and Russell Investments
Assuming the 90 days trading horizon First National Financial is expected to generate 22.76 times more return on investment than Russell Investments. However, First National is 22.76 times more volatile than Russell Investments Global. It trades about 0.28 of its potential returns per unit of risk. Russell Investments Global is currently generating about -0.13 per unit of risk. If you would invest 1,609 in First National Financial on July 24, 2025 and sell it today you would earn a total of 581.00 from holding First National Financial or generate 36.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First National Financial vs. Russell Investments Global
Performance |
| Timeline |
| First National Financial |
| Russell Investments |
First National and Russell Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and Russell Investments
The main advantage of trading using opposite First National and Russell Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National position performs unexpectedly, Russell Investments 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 Russell Investments will offset losses from the drop in Russell Investments' long position.| First National vs. North American Construction | First National vs. Minaean SP Construction | First National vs. 2028 Investment Grade | First National vs. Atrium Mortgage Investment |
| Russell Investments vs. Hemisphere Energy | Russell Investments vs. Atrium Mortgage Investment | Russell Investments vs. Overactive Media Corp | Russell Investments vs. Westshore Terminals 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 Stocks Directory module to find actively traded stocks across global markets.
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