Correlation Between Primis Financial and Peoples Bancorp
Can any of the company-specific risk be diversified away by investing in both Primis Financial and Peoples 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 Primis Financial and Peoples Bancorp 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 Peoples Bancorp, you can compare the effects of market volatilities on Primis Financial and Peoples 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 Primis Financial with a short position of Peoples Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primis Financial and Peoples Bancorp.
Diversification Opportunities for Primis Financial and Peoples Bancorp
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Primis and Peoples is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Primis Financial Corp and Peoples Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Bancorp 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 Peoples Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Bancorp has no effect on the direction of Primis Financial i.e., Primis Financial and Peoples Bancorp go up and down completely randomly.
Pair Corralation between Primis Financial and Peoples Bancorp
Given the investment horizon of 90 days Primis Financial Corp is expected to under-perform the Peoples Bancorp. In addition to that, Primis Financial is 1.19 times more volatile than Peoples Bancorp. It trades about -0.11 of its total potential returns per unit of risk. Peoples Bancorp is currently generating about -0.11 per unit of volatility. If you would invest 3,215 in Peoples Bancorp on October 22, 2024 and sell it today you would lose (85.00) from holding Peoples Bancorp or give up 2.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Primis Financial Corp vs. Peoples Bancorp
Performance |
| Timeline |
| Primis Financial Corp |
| Peoples Bancorp |
Primis Financial and Peoples Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primis Financial and Peoples Bancorp
The main advantage of trading using opposite Primis Financial and Peoples Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primis Financial position performs unexpectedly, Peoples 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 Peoples Bancorp will offset losses from the drop in Peoples Bancorp'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 |
| Peoples Bancorp vs. Eagle Bancorp | Peoples Bancorp vs. Northrim BanCorp | Peoples Bancorp vs. United Bankshares | Peoples Bancorp vs. Pacific Premier 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |