Correlation Between Straits Trading and First Commonwealth
Can any of the company-specific risk be diversified away by investing in both Straits Trading and First Commonwealth 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 Straits Trading and First Commonwealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Straits Trading and First Commonwealth Financial, you can compare the effects of market volatilities on Straits Trading and First Commonwealth 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 Straits Trading with a short position of First Commonwealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Straits Trading and First Commonwealth.
Diversification Opportunities for Straits Trading and First Commonwealth
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Straits and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Straits Trading and First Commonwealth Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Commonwealth and Straits Trading 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 Straits Trading are associated (or correlated) with First Commonwealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Commonwealth has no effect on the direction of Straits Trading i.e., Straits Trading and First Commonwealth go up and down completely randomly.
Pair Corralation between Straits Trading and First Commonwealth
If you would invest 2,037 in Straits Trading on August 31, 2025 and sell it today you would earn a total of 0.00 from holding Straits Trading or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Straits Trading vs. First Commonwealth Financial
Performance |
| Timeline |
| Straits Trading |
| First Commonwealth |
Straits Trading and First Commonwealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Straits Trading and First Commonwealth
The main advantage of trading using opposite Straits Trading and First Commonwealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Straits Trading position performs unexpectedly, First Commonwealth 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 Commonwealth will offset losses from the drop in First Commonwealth's long position.| Straits Trading vs. Wireless Xcessories Group | Straits Trading vs. On4 Communications | Straits Trading vs. Erf Wireless | Straits Trading vs. ARIA Wireless Systems |
| First Commonwealth vs. Dynasty Fine Wines | First Commonwealth vs. Konoike Transport CoLtd | First Commonwealth vs. Naked Wines plc | First Commonwealth vs. Yuexiu Transport Infrastructure |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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