Correlation Between Bank Central and First Solar
Can any of the company-specific risk be diversified away by investing in both Bank Central and First Solar 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 Bank Central and First Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank Central Asia and First Solar, you can compare the effects of market volatilities on Bank Central and First Solar 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 Bank Central with a short position of First Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank Central and First Solar.
Diversification Opportunities for Bank Central and First Solar
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and First is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bank Central Asia and First Solar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Solar and Bank Central 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 Bank Central Asia are associated (or correlated) with First Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Solar has no effect on the direction of Bank Central i.e., Bank Central and First Solar go up and down completely randomly.
Pair Corralation between Bank Central and First Solar
Assuming the 90 days horizon Bank Central Asia is expected to under-perform the First Solar. But the pink sheet apears to be less risky and, when comparing its historical volatility, Bank Central Asia is 1.66 times less risky than First Solar. The pink sheet trades about -0.11 of its potential returns per unit of risk. The First Solar is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 17,833 in First Solar on July 20, 2025 and sell it today you would earn a total of 5,352 from holding First Solar or generate 30.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank Central Asia vs. First Solar
Performance |
| Timeline |
| Bank Central Asia |
| First Solar |
Bank Central and First Solar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank Central and First Solar
The main advantage of trading using opposite Bank Central and First Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank Central position performs unexpectedly, First Solar 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 First Solar will offset losses from the drop in First Solar's long position.| Bank Central vs. Nordea Bank Abp | Bank Central vs. China CITIC Bank | Bank Central vs. Oversea Chinese Banking | Bank Central vs. Societe Generale ADR |
| First Solar vs. Pembina Pipeline Corp | First Solar vs. Cheniere Energy Partners | First Solar vs. Venture Global, | First Solar vs. Nextracker Class A |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |