Correlation Between Primis Financial and First Interstate
Can any of the company-specific risk be diversified away by investing in both Primis Financial and First Interstate 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 Primis Financial and First Interstate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Primis Financial Corp and First Interstate BancSystem, you can compare the effects of market volatilities on Primis Financial and First Interstate 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 Primis Financial with a short position of First Interstate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primis Financial and First Interstate.
Diversification Opportunities for Primis Financial and First Interstate
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Primis and First is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Primis Financial Corp and First Interstate BancSystem in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Interstate Ban and Primis Financial 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 Primis Financial Corp are associated (or correlated) with First Interstate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Interstate Ban has no effect on the direction of Primis Financial i.e., Primis Financial and First Interstate go up and down completely randomly.
Pair Corralation between Primis Financial and First Interstate
Given the investment horizon of 90 days Primis Financial Corp is expected to under-perform the First Interstate. But the stock apears to be less risky and, when comparing its historical volatility, Primis Financial Corp is 1.16 times less risky than First Interstate. The stock trades about -0.11 of its potential returns per unit of risk. The First Interstate BancSystem is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,253 in First Interstate BancSystem on October 22, 2024 and sell it today you would earn a total of 1.00 from holding First Interstate BancSystem or generate 0.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Primis Financial Corp vs. First Interstate BancSystem
Performance |
| Timeline |
| Primis Financial Corp |
| First Interstate Ban |
Primis Financial and First Interstate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primis Financial and First Interstate
The main advantage of trading using opposite Primis Financial and First Interstate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primis Financial position performs unexpectedly, First Interstate 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 Interstate will offset losses from the drop in First Interstate's long position.| Primis Financial vs. Affinity Bancshares | Primis Financial vs. Home Federal Bancorp | Primis Financial vs. Community West Bancshares | Primis Financial vs. Investar Holding Corp |
| First Interstate vs. First Financial Bankshares | First Interstate vs. CVB Financial | First Interstate vs. Eagle Bancorp Montana | First Interstate vs. Glacier Bancorp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |