Correlation Between First Reliance and First Financial
Can any of the company-specific risk be diversified away by investing in both First Reliance and First Financial 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 Reliance and First Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Reliance Bancshares and First Financial Northwest, you can compare the effects of market volatilities on First Reliance and First Financial 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 Reliance with a short position of First Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Reliance and First Financial.
Diversification Opportunities for First Reliance and First Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Reliance Bancshares and First Financial Northwest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Financial Northwest and First Reliance 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 Reliance Bancshares are associated (or correlated) with First Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Financial Northwest has no effect on the direction of First Reliance i.e., First Reliance and First Financial go up and down completely randomly.
Pair Corralation between First Reliance and First Financial
If you would invest 1,100 in First Reliance Bancshares on October 30, 2025 and sell it today you would earn a total of 219.00 from holding First Reliance Bancshares or generate 19.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.67% |
| Values | Daily Returns |
First Reliance Bancshares vs. First Financial Northwest
Performance |
| Timeline |
| First Reliance Bancshares |
| First Financial Northwest |
Risk-Adjusted Performance
Weakest
Weak | Strong |
First Reliance and First Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Reliance and First Financial
The main advantage of trading using opposite First Reliance and First Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Reliance position performs unexpectedly, First Financial 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 Financial will offset losses from the drop in First Financial's long position.| First Reliance vs. FNB Inc | First Reliance vs. Apollo Bancorp | First Reliance vs. Commercial National Financial | First Reliance vs. Community Bankers |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Directory Find actively traded commodities issued by global exchanges |