Correlation Between First International and Bio View

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Can any of the company-specific risk be diversified away by investing in both First International and Bio View 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 International and Bio View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First International Bank and Bio View, you can compare the effects of market volatilities on First International and Bio View 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 International with a short position of Bio View. Check out your portfolio center. Please also check ongoing floating volatility patterns of First International and Bio View.

Diversification Opportunities for First International and Bio View

-0.82
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between First and Bio is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding First International Bank and Bio View in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio View and First International 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 International Bank are associated (or correlated) with Bio View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio View has no effect on the direction of First International i.e., First International and Bio View go up and down completely randomly.

Pair Corralation between First International and Bio View

Assuming the 90 days trading horizon First International Bank is expected to generate 0.33 times more return on investment than Bio View. However, First International Bank is 3.0 times less risky than Bio View. It trades about 0.29 of its potential returns per unit of risk. Bio View is currently generating about -0.07 per unit of risk. If you would invest  1,981,729  in First International Bank on April 23, 2025 and sell it today you would earn a total of  488,271  from holding First International Bank or generate 24.64% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

First International Bank  vs.  Bio View

 Performance 
       Timeline  
First International Bank 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in First International Bank are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, First International sustained solid returns over the last few months and may actually be approaching a breakup point.
Bio View 

Risk-Adjusted Performance

Very Weak

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

First International and Bio View Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with First International and Bio View

The main advantage of trading using opposite First International and Bio View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First International position performs unexpectedly, Bio View 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 Bio View will offset losses from the drop in Bio View's long position.
The idea behind First International Bank and Bio View 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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