Correlation Between First Sound and Kish Bancorp
Can any of the company-specific risk be diversified away by investing in both First Sound and Kish 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 Sound and Kish Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Sound Bank and Kish Bancorp, you can compare the effects of market volatilities on First Sound and Kish 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 Sound with a short position of Kish Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Sound and Kish Bancorp.
Diversification Opportunities for First Sound and Kish Bancorp
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between First and Kish is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding First Sound Bank and Kish Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kish Bancorp and First Sound 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 Sound Bank are associated (or correlated) with Kish Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kish Bancorp has no effect on the direction of First Sound i.e., First Sound and Kish Bancorp go up and down completely randomly.
Pair Corralation between First Sound and Kish Bancorp
If you would invest 3,413 in Kish Bancorp on November 3, 2024 and sell it today you would earn a total of 87.00 from holding Kish Bancorp or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
First Sound Bank vs. Kish Bancorp
Performance |
| Timeline |
| First Sound Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kish Bancorp |
First Sound and Kish Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Sound and Kish Bancorp
The main advantage of trading using opposite First Sound and Kish Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Sound position performs unexpectedly, Kish 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 Kish Bancorp will offset losses from the drop in Kish Bancorp's long position.| First Sound vs. Rhinebeck Bancorp | First Sound vs. Magyar Bancorp | First Sound vs. Community West Bancshares | First Sound vs. First Financial Northwest |
| Kish Bancorp vs. CNB Corporation | Kish Bancorp vs. FNB Inc | Kish Bancorp vs. Community Bankers | Kish Bancorp vs. Apollo 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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