Correlation Between Customers Bancorp and First Guaranty
Can any of the company-specific risk be diversified away by investing in both Customers Bancorp and First Guaranty 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 Customers Bancorp and First Guaranty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Customers Bancorp and First Guaranty Bancshares, you can compare the effects of market volatilities on Customers Bancorp and First Guaranty 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 Customers Bancorp with a short position of First Guaranty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Customers Bancorp and First Guaranty.
Diversification Opportunities for Customers Bancorp and First Guaranty
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Customers and First is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Customers Bancorp and First Guaranty Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Guaranty Bancshares and Customers Bancorp 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 Customers Bancorp are associated (or correlated) with First Guaranty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Guaranty Bancshares has no effect on the direction of Customers Bancorp i.e., Customers Bancorp and First Guaranty go up and down completely randomly.
Pair Corralation between Customers Bancorp and First Guaranty
Given the investment horizon of 90 days Customers Bancorp is expected to generate 2.59 times more return on investment than First Guaranty. However, Customers Bancorp is 2.59 times more volatile than First Guaranty Bancshares. It trades about 0.08 of its potential returns per unit of risk. First Guaranty Bancshares is currently generating about 0.04 per unit of risk. If you would invest 4,771 in Customers Bancorp on September 12, 2024 and sell it today you would earn a total of 673.50 from holding Customers Bancorp or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Customers Bancorp vs. First Guaranty Bancshares
Performance |
| Timeline |
| Customers Bancorp |
| First Guaranty Bancshares |
Customers Bancorp and First Guaranty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Customers Bancorp and First Guaranty
The main advantage of trading using opposite Customers Bancorp and First Guaranty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Customers Bancorp position performs unexpectedly, First Guaranty 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 Guaranty will offset losses from the drop in First Guaranty's long position.| Customers Bancorp vs. Glacier Bancorp | Customers Bancorp vs. Capitol Federal Financial | Customers Bancorp vs. Byline Bancorp | Customers Bancorp vs. Cathay General Bancorp |
| First Guaranty vs. CNB Financial | First Guaranty vs. First Citizens BancShares | First Guaranty vs. Texas Capital Bancshares | First Guaranty vs. Merchants Bancorp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |