Correlation Between CrossFirst Bankshares and First Northwest
Can any of the company-specific risk be diversified away by investing in both CrossFirst Bankshares and First Northwest 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 Northwest 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 Northwest Bancorp, you can compare the effects of market volatilities on CrossFirst Bankshares and First Northwest 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 Northwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrossFirst Bankshares and First Northwest.
Diversification Opportunities for CrossFirst Bankshares and First Northwest
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CrossFirst and First is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding CrossFirst Bankshares and First Northwest Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Northwest Bancorp 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 Northwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Northwest Bancorp has no effect on the direction of CrossFirst Bankshares i.e., CrossFirst Bankshares and First Northwest go up and down completely randomly.
Pair Corralation between CrossFirst Bankshares and First Northwest
If you would invest 1,599 in CrossFirst Bankshares on January 13, 2025 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 | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
CrossFirst Bankshares vs. First Northwest Bancorp
Performance |
| Timeline |
| CrossFirst Bankshares |
Risk-Adjusted Performance
Good
Weak | Strong |
| First Northwest Bancorp |
CrossFirst Bankshares and First Northwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CrossFirst Bankshares and First Northwest
The main advantage of trading using opposite CrossFirst Bankshares and First Northwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrossFirst Bankshares position performs unexpectedly, First Northwest 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 Northwest will offset losses from the drop in First Northwest'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 Northwest vs. Home Federal Bancorp | First Northwest vs. First Financial Northwest | First Northwest vs. First Capital | First Northwest 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |