Correlation Between 1st Capital and Pathfinder Bancorp
Can any of the company-specific risk be diversified away by investing in both 1st Capital and Pathfinder 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 1st Capital and Pathfinder Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1st Capital Bank and Pathfinder Bancorp, you can compare the effects of market volatilities on 1st Capital and Pathfinder 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 1st Capital with a short position of Pathfinder Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1st Capital and Pathfinder Bancorp.
Diversification Opportunities for 1st Capital and Pathfinder Bancorp
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 1st and Pathfinder is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding 1st Capital Bank and Pathfinder Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pathfinder Bancorp and 1st 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 1st Capital Bank are associated (or correlated) with Pathfinder Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pathfinder Bancorp has no effect on the direction of 1st Capital i.e., 1st Capital and Pathfinder Bancorp go up and down completely randomly.
Pair Corralation between 1st Capital and Pathfinder Bancorp
If you would invest 1,400 in 1st Capital Bank on August 30, 2024 and sell it today you would earn a total of 0.00 from holding 1st Capital Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
1st Capital Bank vs. Pathfinder Bancorp
Performance |
| Timeline |
| 1st Capital Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
| Pathfinder Bancorp |
1st Capital and Pathfinder Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1st Capital and Pathfinder Bancorp
The main advantage of trading using opposite 1st Capital and Pathfinder Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1st Capital position performs unexpectedly, Pathfinder 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 Pathfinder Bancorp will offset losses from the drop in Pathfinder Bancorp's long position.| 1st Capital vs. Pacific Valley Bank | 1st Capital vs. Pinnacle Bank | 1st Capital vs. Santa Cruz County | 1st Capital vs. First Northern Community |
| Pathfinder Bancorp vs. Home Federal Bancorp | Pathfinder Bancorp vs. Lake Shore Bancorp | Pathfinder Bancorp vs. Magyar Bancorp | Pathfinder Bancorp vs. Community West Bancshares |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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