Correlation Between Slate Grocery and First National
Can any of the company-specific risk be diversified away by investing in both Slate Grocery and First National 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 Slate Grocery and First National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Slate Grocery REIT and First National Financial, you can compare the effects of market volatilities on Slate Grocery and First National 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 Slate Grocery with a short position of First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Slate Grocery and First National.
Diversification Opportunities for Slate Grocery and First National
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Slate and First is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Slate Grocery REIT and First National Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First National Financial and Slate Grocery 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 Slate Grocery REIT are associated (or correlated) with First National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First National Financial has no effect on the direction of Slate Grocery i.e., Slate Grocery and First National go up and down completely randomly.
Pair Corralation between Slate Grocery and First National
Assuming the 90 days trading horizon Slate Grocery is expected to generate 3.33 times less return on investment than First National. But when comparing it to its historical volatility, Slate Grocery REIT is 1.28 times less risky than First National. It trades about 0.12 of its potential returns per unit of risk. First National Financial is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,897 in First National Financial on July 23, 2025 and sell it today you would earn a total of 288.00 from holding First National Financial or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Slate Grocery REIT vs. First National Financial
Performance |
| Timeline |
| Slate Grocery REIT |
| First National Financial |
Slate Grocery and First National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Slate Grocery and First National
The main advantage of trading using opposite Slate Grocery and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Slate Grocery position performs unexpectedly, First National 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 National will offset losses from the drop in First National's long position.| Slate Grocery vs. Gfl Environmental Holdings | Slate Grocery vs. Champion Iron | Slate Grocery vs. Arbor Metals Corp | Slate Grocery vs. Carrier Connect Data |
| First National vs. Magna Mining | First National vs. Wilmington Capital Management | First National vs. Western Investment | First National vs. Bragg Gaming Group |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
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| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |