Correlation Between First Community and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both First Community and Apollo Bancorp 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 Community and Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Community and Apollo Bancorp, you can compare the effects of market volatilities on First Community and Apollo Bancorp 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 Community with a short position of Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Community and Apollo Bancorp.
Diversification Opportunities for First Community and Apollo Bancorp
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between First and Apollo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding First Community and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and First Community 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 Community are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of First Community i.e., First Community and Apollo Bancorp go up and down completely randomly.
Pair Corralation between First Community and Apollo Bancorp
Given the investment horizon of 90 days First Community is expected to under-perform the Apollo Bancorp. But the pink sheet apears to be less risky and, when comparing its historical volatility, First Community is 1.21 times less risky than Apollo Bancorp. The pink sheet trades about -0.01 of its potential returns per unit of risk. The Apollo Bancorp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,722 in Apollo Bancorp on September 3, 2024 and sell it today you would earn a total of 13.00 from holding Apollo Bancorp or generate 0.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 62.31% |
| Values | Daily Returns |
First Community vs. Apollo Bancorp
Performance |
| Timeline |
| First Community |
| Apollo Bancorp |
First Community and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Community and Apollo Bancorp
The main advantage of trading using opposite First Community and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Community position performs unexpectedly, Apollo Bancorp 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp's long position.| First Community vs. CCSB Financial Corp | First Community vs. Delhi Bank Corp | First Community vs. BEO Bancorp | First Community vs. First Community Financial |
| Apollo Bancorp vs. First Hawaiian | Apollo Bancorp vs. Central Pacific Financial | Apollo Bancorp vs. Territorial Bancorp | Apollo Bancorp vs. Comerica |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |