Correlation Between CrossFirst Bankshares and First Mid
Can any of the company-specific risk be diversified away by investing in both CrossFirst Bankshares and First Mid 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 CrossFirst Bankshares and First Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CrossFirst Bankshares and First Mid Illinois, you can compare the effects of market volatilities on CrossFirst Bankshares and First Mid 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 CrossFirst Bankshares with a short position of First Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrossFirst Bankshares and First Mid.
Diversification Opportunities for CrossFirst Bankshares and First Mid
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CrossFirst and First is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding CrossFirst Bankshares and First Mid Illinois in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Mid Illinois and CrossFirst Bankshares 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 CrossFirst Bankshares are associated (or correlated) with First Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Mid Illinois has no effect on the direction of CrossFirst Bankshares i.e., CrossFirst Bankshares and First Mid go up and down completely randomly.
Pair Corralation between CrossFirst Bankshares and First Mid
If you would invest 1,599 in CrossFirst Bankshares on December 31, 2024 and sell it today you would earn a total of 0.00 from holding CrossFirst Bankshares or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
CrossFirst Bankshares vs. First Mid Illinois
Performance |
| Timeline |
| CrossFirst Bankshares |
Risk-Adjusted Performance
Modest
Weak | Strong |
| First Mid Illinois |
CrossFirst Bankshares and First Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CrossFirst Bankshares and First Mid
The main advantage of trading using opposite CrossFirst Bankshares and First Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrossFirst Bankshares position performs unexpectedly, First Mid 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 Mid will offset losses from the drop in First Mid's long position.| CrossFirst Bankshares vs. Home Bancorp | CrossFirst Bankshares vs. Great Southern Bancorp | CrossFirst Bankshares vs. Finward Bancorp | CrossFirst Bankshares vs. Community West Bancshares |
| First Mid vs. Finward Bancorp | First Mid vs. Great Southern Bancorp | First Mid vs. Franklin Financial Services | First Mid vs. Community West Bancshares |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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