Correlation Between Interface and Kentucky First

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

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

Diversification Opportunities for Interface and Kentucky First

0.55

Correlation Coefficient

Interface  Kentucky First

Very weak diversification

The 3 months correlation between Interface and Kentucky is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Interface and Kentucky First Federal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kentucky First Federal and Interface 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 Interface are associated (or correlated) with Kentucky First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kentucky First Federal has no effect on the direction of Interface i.e., Interface and Kentucky First go up and down completely randomly.

Pair Corralation between Interface and Kentucky First

Given the investment horizon of 90 days Interface is expected to generate 1.73 times less return on investment than Kentucky First. In addition to that, Interface is 1.27 times more volatile than Kentucky First Federal. It trades about 0.1 of its total potential returns per unit of risk. Kentucky First Federal is currently generating about 0.23 per unit of volatility. If you would invest  242.00  in Kentucky First Federal on May 12, 2025 and sell it today you would earn a total of  87.00  from holding Kentucky First Federal or generate 35.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	93.65%
Values	Daily Returns

Interface  vs.  Kentucky First Federal

Interface

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Interface are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, Interface exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kentucky First Federal

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Kentucky First Federal are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady technical and fundamental indicators, Kentucky First sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Interface and Kentucky First

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

The idea behind Interface and Kentucky First Federal 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.