Correlation Between Partners Value and First National

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

By analyzing existing cross correlation between Partners Value Investments and First National Financial, you can compare the effects of market volatilities on Partners Value 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 Partners Value with a short position of First National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partners Value and First National.

Diversification Opportunities for Partners Value and First National

0.41

Correlation Coefficient

Partners Value  First National

Very weak diversification

The 3 months correlation between Partners and First is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Partners Value Investments 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 Partners Value 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 Partners Value Investments 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 Partners Value i.e., Partners Value and First National go up and down completely randomly.

Pair Corralation between Partners Value and First National

Assuming the 90 days trading horizon Partners Value is expected to generate 4.57 times less return on investment than First National. In addition to that, Partners Value is 4.06 times more volatile than First National Financial. It trades about 0.01 of its total potential returns per unit of risk. First National Financial is currently generating about 0.1 per unit of volatility. If you would invest  1,066  in First National Financial on May 14, 2025 and sell it today you would earn a total of  844.00  from holding First National Financial or generate 79.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Partners Value Investments  vs.  First National Financial

Partners Value Inves

Risk-Adjusted Performance

Weak

Over the last 90 days Partners Value Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

First National Financial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First National Financial are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, First National unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Partners Value and First National

The main advantage of trading using opposite Partners Value and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Partners Value 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.

The idea behind Partners Value Investments and First National Financial 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.