Correlation Between Old Second and FirstSun Capital
Can any of the company-specific risk be diversified away by investing in both Old Second and FirstSun 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 Old Second and FirstSun Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Second Bancorp and FirstSun Capital Bancorp, you can compare the effects of market volatilities on Old Second and FirstSun 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 Old Second with a short position of FirstSun Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Second and FirstSun Capital.
Diversification Opportunities for Old Second and FirstSun Capital
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Old and FirstSun is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Old Second Bancorp and FirstSun Capital Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstSun Capital Bancorp and Old Second 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 Old Second Bancorp are associated (or correlated) with FirstSun Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstSun Capital Bancorp has no effect on the direction of Old Second i.e., Old Second and FirstSun Capital go up and down completely randomly.
Pair Corralation between Old Second and FirstSun Capital
Given the investment horizon of 90 days Old Second Bancorp is expected to generate 0.59 times more return on investment than FirstSun Capital. However, Old Second Bancorp is 1.7 times less risky than FirstSun Capital. It trades about 0.03 of its potential returns per unit of risk. FirstSun Capital Bancorp is currently generating about -0.06 per unit of risk. If you would invest 1,850 in Old Second Bancorp on August 27, 2025 and sell it today you would earn a total of 50.00 from holding Old Second Bancorp or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Second Bancorp vs. FirstSun Capital Bancorp
Performance |
| Timeline |
| Old Second Bancorp |
| FirstSun Capital Bancorp |
Old Second and FirstSun Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Second and FirstSun Capital
The main advantage of trading using opposite Old Second and FirstSun Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Second position performs unexpectedly, FirstSun 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 FirstSun Capital will offset losses from the drop in FirstSun Capital's long position.| Old Second vs. Ecoloclean Industrs | Old Second vs. Capital Clean Energy | Old Second vs. Cleanaway Waste Management | Old Second vs. Tel Instrument Electronics Corp |
| FirstSun Capital vs. Corsair Gaming | FirstSun Capital vs. GOME Retail Holdings | FirstSun Capital vs. Air Lease | FirstSun Capital vs. Costco Wholesale Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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