Correlation Between Canaccord Genuity and First National

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

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

Diversification Opportunities for Canaccord Genuity and First National

0.84

Correlation Coefficient

Canaccord Genuity  First National

Very poor diversification

The 3 months correlation between Canaccord and First is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Canaccord Genuity Group 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 Canaccord Genuity 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 Canaccord Genuity Group 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 Canaccord Genuity i.e., Canaccord Genuity and First National go up and down completely randomly.

Pair Corralation between Canaccord Genuity and First National

Assuming the 90 days trading horizon Canaccord Genuity is expected to generate 1.3 times less return on investment than First National. But when comparing it to its historical volatility, Canaccord Genuity Group is 1.62 times less risky than First National. It trades about 0.22 of its potential returns per unit of risk. First National Financial is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  1,453  in First National Financial on April 23, 2025 and sell it today you would earn a total of  203.00  from holding First National Financial or generate 13.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Canaccord Genuity Group  vs.  First National Financial

Canaccord Genuity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Canaccord Genuity Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Canaccord Genuity may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, First National unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Canaccord Genuity and First National

The main advantage of trading using opposite Canaccord Genuity and First National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canaccord Genuity 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 Canaccord Genuity Group 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.