Correlation Between First National and Southern Banc
Can any of the company-specific risk be diversified away by investing in both First National and Southern Banc 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 First National and Southern Banc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First National Bank and Southern Banc, you can compare the effects of market volatilities on First National and Southern Banc 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 First National with a short position of Southern Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of First National and Southern Banc.
Diversification Opportunities for First National and Southern Banc
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between First and Southern is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding First National Bank and Southern Banc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Banc and First National 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 First National Bank are associated (or correlated) with Southern Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Banc has no effect on the direction of First National i.e., First National and Southern Banc go up and down completely randomly.
Pair Corralation between First National and Southern Banc
If you would invest 22,351 in First National Bank on September 13, 2024 and sell it today you would earn a total of 649.00 from holding First National Bank or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
First National Bank vs. Southern Banc
Performance |
| Timeline |
| First National Bank |
| Southern Banc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
First National and Southern Banc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First National and Southern Banc
The main advantage of trading using opposite First National and Southern Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First National position performs unexpectedly, Southern Banc 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 Southern Banc will offset losses from the drop in Southern Banc's long position.| First National vs. IF Bancorp | First National vs. LINKBANCORP | First National vs. Pathfinder Bancorp | First National vs. First Keystone Corp |
| Southern Banc vs. 1895 of Wisconsin | Southern Banc vs. OptimumBank Holdings | Southern Banc vs. First National Bank | Southern Banc vs. CNB 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Positions Ratings 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 |