Correlation Between FIRST REP and Solidion Technology

Can any of the company-specific risk be diversified away by investing in both FIRST REP and Solidion Technology 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 REP and Solidion Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between FIRST REP BK and Solidion Technology, you can compare the effects of market volatilities on FIRST REP and Solidion Technology 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 REP with a short position of Solidion Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIRST REP and Solidion Technology.

Diversification Opportunities for FIRST REP and Solidion Technology

0.18

Correlation Coefficient

FIRST REP  Solidion Technology

Average diversification

The 3 months correlation between FIRST and Solidion is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding FIRST REP BK and Solidion Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solidion Technology and FIRST REP 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 REP BK are associated (or correlated) with Solidion Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solidion Technology has no effect on the direction of FIRST REP i.e., FIRST REP and Solidion Technology go up and down completely randomly.

Pair Corralation between FIRST REP and Solidion Technology

If you would invest  244.00  in Solidion Technology on January 29, 2024 and sell it today you would lose (14.00) from holding Solidion Technology or give up 5.74% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

FIRST REP BK  vs.  Solidion Technology

FIRST REP BK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FIRST REP BK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, FIRST REP is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Solidion Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Solidion Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Solidion Technology is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with FIRST REP and Solidion Technology

The main advantage of trading using opposite FIRST REP and Solidion Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIRST REP position performs unexpectedly, Solidion Technology 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 Solidion Technology will offset losses from the drop in Solidion Technology's long position.

The idea behind FIRST REP BK and Solidion Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..