Correlation Between First Capital and Seacoast Banking
Can any of the company-specific risk be diversified away by investing in both First Capital and Seacoast Banking 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 Capital and Seacoast Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Capital and Seacoast Banking, you can compare the effects of market volatilities on First Capital and Seacoast Banking 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 Capital with a short position of Seacoast Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Capital and Seacoast Banking.
Diversification Opportunities for First Capital and Seacoast Banking
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between First and Seacoast is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding First Capital and Seacoast Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seacoast Banking and First Capital 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 Capital are associated (or correlated) with Seacoast Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seacoast Banking has no effect on the direction of First Capital i.e., First Capital and Seacoast Banking go up and down completely randomly.
Pair Corralation between First Capital and Seacoast Banking
Given the investment horizon of 90 days First Capital is expected to generate 1.06 times more return on investment than Seacoast Banking. However, First Capital is 1.06 times more volatile than Seacoast Banking. It trades about 0.05 of its potential returns per unit of risk. Seacoast Banking is currently generating about 0.04 per unit of risk. If you would invest 2,746 in First Capital on November 8, 2024 and sell it today you would earn a total of 574.00 from holding First Capital or generate 20.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
First Capital vs. Seacoast Banking
Performance |
| Timeline |
| First Capital |
| Seacoast Banking |
First Capital and Seacoast Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Capital and Seacoast Banking
The main advantage of trading using opposite First Capital and Seacoast Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Capital position performs unexpectedly, Seacoast Banking 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 Seacoast Banking will offset losses from the drop in Seacoast Banking's long position.| First Capital vs. Home Federal Bancorp | First Capital vs. First Financial Northwest | First Capital vs. First Northwest Bancorp | First Capital vs. Community West Bancshares |
| Seacoast Banking vs. Home Federal Bancorp | Seacoast Banking vs. First Financial Northwest | Seacoast Banking vs. First Northwest Bancorp | Seacoast Banking vs. First Capital |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |