Correlation Between First American and Slow Capital
Can any of the company-specific risk be diversified away by investing in both First American and Slow Capital 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 American and Slow Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First American Funds and Slow Capital Growth, you can compare the effects of market volatilities on First American and Slow Capital 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 American with a short position of Slow Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First American and Slow Capital.
Diversification Opportunities for First American and Slow Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Slow is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First American Funds and Slow Capital Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slow Capital Growth and First American 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 American Funds are associated (or correlated) with Slow Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slow Capital Growth has no effect on the direction of First American i.e., First American and Slow Capital go up and down completely randomly.
Pair Corralation between First American and Slow Capital
If you would invest 973.00 in Slow Capital Growth on June 6, 2025 and sell it today you would earn a total of 26.00 from holding Slow Capital Growth or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.64% |
| Values | Daily Returns |
First American Funds vs. Slow Capital Growth
Performance |
| Timeline |
| First American Funds |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Slow Capital Growth |
First American and Slow Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First American and Slow Capital
The main advantage of trading using opposite First American and Slow Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First American position performs unexpectedly, Slow Capital 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 Slow Capital will offset losses from the drop in Slow Capital's long position.| First American vs. First American Funds | First American vs. First American Funds | First American vs. First American Funds | First American vs. First American Funds |
| Slow Capital vs. Astor Longshort Fund | Slow Capital vs. Leader Short Term Bond | Slow Capital vs. Westwood Short Duration | Slow Capital vs. Delaware Investments Ultrashort |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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