Correlation Between First Savings and Unity Bancorp
Can any of the company-specific risk be diversified away by investing in both First Savings and Unity 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 Savings and Unity Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Savings Financial and Unity Bancorp, you can compare the effects of market volatilities on First Savings and Unity 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 Savings with a short position of Unity Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Savings and Unity Bancorp.
Diversification Opportunities for First Savings and Unity Bancorp
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Unity is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding First Savings Financial and Unity Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unity Bancorp and First Savings 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 Savings Financial are associated (or correlated) with Unity Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unity Bancorp has no effect on the direction of First Savings i.e., First Savings and Unity Bancorp go up and down completely randomly.
Pair Corralation between First Savings and Unity Bancorp
Given the investment horizon of 90 days First Savings is expected to generate 1.23 times less return on investment than Unity Bancorp. But when comparing it to its historical volatility, First Savings Financial is 1.0 times less risky than Unity Bancorp. It trades about 0.14 of its potential returns per unit of risk. Unity Bancorp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 4,727 in Unity Bancorp on November 10, 2025 and sell it today you would earn a total of 893.00 from holding Unity Bancorp or generate 18.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 91.94% |
| Values | Daily Returns |
First Savings Financial vs. Unity Bancorp
Performance |
| Timeline |
| First Savings Financial |
| Unity Bancorp |
First Savings and Unity Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Savings and Unity Bancorp
The main advantage of trading using opposite First Savings and Unity Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Savings position performs unexpectedly, Unity 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 Unity Bancorp will offset losses from the drop in Unity Bancorp's long position.| First Savings vs. The Victory Bancorp | First Savings vs. MF Bancorp | First Savings vs. First Community Financial | First Savings vs. Andover Bancorp |
| Unity Bancorp vs. Capital Bancorp | Unity Bancorp vs. Peoples Fin | Unity Bancorp vs. Northfield Bancorp | Unity Bancorp vs. First Business Financial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |