Correlation Between Bank First and Alphabet

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Bank First and Alphabet 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 Bank First and Alphabet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank First National and Alphabet Cl A, you can compare the effects of market volatilities on Bank First and Alphabet 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 Bank First with a short position of Alphabet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank First and Alphabet.

Diversification Opportunities for Bank First and Alphabet

-0.02
  Correlation Coefficient

Good diversification

The 3 months correlation between Bank First and Alphabet is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Bank First National and Alphabet Cl A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alphabet Cl A and Bank First 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 Bank First National are associated (or correlated) with Alphabet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alphabet Cl A has no effect on the direction of Bank First i.e., Bank First and Alphabet go up and down completely randomly.

Pair Corralation between Bank First and Alphabet

Considering the 90-day investment horizon Bank First is expected to generate 1.16 times less return on investment than Alphabet. But when comparing it to its historical volatility, Bank First National is 1.3 times less risky than Alphabet. It trades about 0.04 of its potential returns per unit of risk. Alphabet Cl A is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  7,414  in Alphabet Cl A on June 27, 2022 and sell it today you would earn a total of  2,460  from holding Alphabet Cl A or generate 33.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.8%
ValuesDaily Returns

Bank First National  vs.  Alphabet Cl A

 Performance (%) 
       Timeline  
Bank First National 
Bank First Performance
2 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Bank First National are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, Bank First is not utilizing all of its potentials. The new stock price disturbance, may contribute to short-term losses for the investors.

Bank First Price Channel

Alphabet Cl A 
Alphabet Performance
0 of 100
Over the last 90 days Alphabet Cl A has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively steady which may send shares a bit higher in October 2022. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

Alphabet Price Channel

Bank First and Alphabet Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bank First and Alphabet

The main advantage of trading using opposite Bank First and Alphabet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank First position performs unexpectedly, Alphabet 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 Alphabet will offset losses from the drop in Alphabet's long position.
Bank First vs. Sigma Lithium Corp
The idea behind Bank First National and Alphabet Cl A 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.
Alphabet vs. Industrias Bachoco SA
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 Transaction History module to view history of all your transactions and understand their impact on performance.

Other Complementary Tools

Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go