Correlation Between New York and First Hawaiian
Can any of the company-specific risk be diversified away by investing in both New York and First Hawaiian 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 New York and First Hawaiian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New York Community and First Hawaiian, you can compare the effects of market volatilities on New York and First Hawaiian 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 New York with a short position of First Hawaiian. Check out your portfolio center. Please also check ongoing floating volatility patterns of New York and First Hawaiian.
Diversification Opportunities for New York and First Hawaiian
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between New and First is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding New York Community and First Hawaiian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hawaiian and New York 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 New York Community are associated (or correlated) with First Hawaiian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hawaiian has no effect on the direction of New York i.e., New York and First Hawaiian go up and down completely randomly.
Pair Corralation between New York and First Hawaiian
Given the investment horizon of 90 days New York Community is expected to under-perform the First Hawaiian. In addition to that, New York is 2.61 times more volatile than First Hawaiian. It trades about -0.09 of its total potential returns per unit of risk. First Hawaiian is currently generating about -0.21 per unit of volatility. If you would invest 2,152 in First Hawaiian on March 4, 2024 and sell it today you would lose (119.00) from holding First Hawaiian or give up 5.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
New York Community vs. First Hawaiian
Performance |
Timeline |
New York Community |
First Hawaiian |
New York and First Hawaiian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with New York and First Hawaiian
The main advantage of trading using opposite New York and First Hawaiian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New York position performs unexpectedly, First Hawaiian 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 Hawaiian will offset losses from the drop in First Hawaiian's long position.New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
First Hawaiian vs. Territorial Bancorp | First Hawaiian vs. Bank of Hawaii | First Hawaiian vs. Financial Institutions | First Hawaiian vs. Heritage Financial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |