Correlation Between First Bankers and Triad Business
Can any of the company-specific risk be diversified away by investing in both First Bankers and Triad Business 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 Bankers and Triad Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Bankers Trustshares and Triad Business Bank, you can compare the effects of market volatilities on First Bankers and Triad Business 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 Bankers with a short position of Triad Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Bankers and Triad Business.
Diversification Opportunities for First Bankers and Triad Business
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Triad is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding First Bankers Trustshares and Triad Business Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triad Business Bank and First Bankers 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 Bankers Trustshares are associated (or correlated) with Triad Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triad Business Bank has no effect on the direction of First Bankers i.e., First Bankers and Triad Business go up and down completely randomly.
Pair Corralation between First Bankers and Triad Business
Given the investment horizon of 90 days First Bankers Trustshares is expected to generate 1.31 times more return on investment than Triad Business. However, First Bankers is 1.31 times more volatile than Triad Business Bank. It trades about -0.01 of its potential returns per unit of risk. Triad Business Bank is currently generating about -0.05 per unit of risk. If you would invest 2,193 in First Bankers Trustshares on August 29, 2024 and sell it today you would lose (508.00) from holding First Bankers Trustshares or give up 23.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.89% |
| Values | Daily Returns |
First Bankers Trustshares vs. Triad Business Bank
Performance |
| Timeline |
| First Bankers Trustshares |
| Triad Business Bank |
First Bankers and Triad Business Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Bankers and Triad Business
The main advantage of trading using opposite First Bankers and Triad Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Bankers position performs unexpectedly, Triad Business 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 Triad Business will offset losses from the drop in Triad Business' long position.| First Bankers vs. Greenville Federal Financial | First Bankers vs. First Ottawa Bancshares | First Bankers vs. Coastal Carolina Bancshares | First Bankers vs. Citizens Bancorp Investment |
| Triad Business vs. Israel Discount Bank | Triad Business vs. Baraboo Bancorporation | Triad Business vs. Danske Bank AS | Triad Business vs. Jyske Bank AS |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |