Correlation Between First Foods and BankFirst Capital

Can any of the company-specific risk be diversified away by investing in both First Foods and BankFirst 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 First Foods and BankFirst Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between First Foods Group and BankFirst Capital, you can compare the effects of market volatilities on First Foods and BankFirst 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 First Foods with a short position of BankFirst Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Foods and BankFirst Capital.

Diversification Opportunities for First Foods and BankFirst Capital

0.0

Correlation Coefficient

First Foods  BankFirst Capital

Pay attention - limited upside

The 3 months correlation between First and BankFirst is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Foods Group and BankFirst Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankFirst Capital and First Foods 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 Foods Group are associated (or correlated) with BankFirst Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankFirst Capital has no effect on the direction of First Foods i.e., First Foods and BankFirst Capital go up and down completely randomly.

Pair Corralation between First Foods and BankFirst Capital

If you would invest  4,390  in BankFirst Capital on August 30, 2025 and sell it today you would earn a total of  255.00  from holding BankFirst Capital or generate 5.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

First Foods Group  vs.  BankFirst Capital

First Foods Group

Risk-Adjusted Performance

Weakest

Over the last 90 days First Foods Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, First Foods is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

BankFirst Capital

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in BankFirst Capital are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, BankFirst Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with First Foods and BankFirst Capital

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

The idea behind First Foods Group and BankFirst Capital 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.

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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.