Correlation Between First State and Albemarle
Can any of the company-specific risk be diversified away by investing in both First State and Albemarle 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 State and Albemarle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First State Financial and Albemarle, you can compare the effects of market volatilities on First State and Albemarle 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 State with a short position of Albemarle. Check out your portfolio center. Please also check ongoing floating volatility patterns of First State and Albemarle.
Diversification Opportunities for First State and Albemarle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and Albemarle is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First State Financial and Albemarle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albemarle and First State 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 State Financial are associated (or correlated) with Albemarle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albemarle has no effect on the direction of First State i.e., First State and Albemarle go up and down completely randomly.
Pair Corralation between First State and Albemarle
If you would invest 4.50 in First State Financial on September 4, 2025 and sell it today you would lose (1.21) from holding First State Financial or give up 26.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
First State Financial vs. Albemarle
Performance |
| Timeline |
| First State Financial |
| Albemarle |
Risk-Adjusted Performance
Good
Weak | Strong |
First State and Albemarle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First State and Albemarle
The main advantage of trading using opposite First State and Albemarle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First State position performs unexpectedly, Albemarle 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 Albemarle will offset losses from the drop in Albemarle's long position.| First State vs. Zijin Mining Group | First State vs. AG Mortgage Investment | First State vs. Westshore Terminals Investment | First State vs. Gladstone Investment |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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