Correlation Between First Guaranty and First Bancshares,
Can any of the company-specific risk be diversified away by investing in both First Guaranty and First Bancshares, 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 Guaranty and First Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Guaranty Bancshares and The First Bancshares,, you can compare the effects of market volatilities on First Guaranty and First Bancshares, 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 Guaranty with a short position of First Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Guaranty and First Bancshares,.
Diversification Opportunities for First Guaranty and First Bancshares,
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and First is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding First Guaranty Bancshares and The First Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancshares, and First Guaranty 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 Guaranty Bancshares are associated (or correlated) with First Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancshares, has no effect on the direction of First Guaranty i.e., First Guaranty and First Bancshares, go up and down completely randomly.
Pair Corralation between First Guaranty and First Bancshares,
Given the investment horizon of 90 days First Guaranty Bancshares is expected to under-perform the First Bancshares,. In addition to that, First Guaranty is 1.33 times more volatile than The First Bancshares,. It trades about -0.03 of its total potential returns per unit of risk. The First Bancshares, is currently generating about 0.05 per unit of volatility. If you would invest 2,294 in The First Bancshares, on January 8, 2025 and sell it today you would earn a total of 1,087 from holding The First Bancshares, or generate 47.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
First Guaranty Bancshares vs. The First Bancshares,
Performance |
| Timeline |
| First Guaranty Bancshares |
| First Bancshares, |
First Guaranty and First Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Guaranty and First Bancshares,
The main advantage of trading using opposite First Guaranty and First Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Guaranty position performs unexpectedly, First Bancshares, 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 Bancshares, will offset losses from the drop in First Bancshares,'s long position.| First Guaranty vs. Camden National | First Guaranty vs. Bank of Marin | First Guaranty vs. Arrow Financial | First Guaranty vs. Auburn National Bancorporation |
| First Bancshares, vs. Camden National | First Bancshares, vs. Bank of Marin | First Bancshares, vs. Arrow Financial | First Bancshares, vs. Auburn National Bancorporation |
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 Positions Ratings module to 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.
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