Correlation Between Greenville Federal and First Commonwealth
Can any of the company-specific risk be diversified away by investing in both Greenville Federal and First Commonwealth 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 Greenville Federal and First Commonwealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenville Federal Financial and First Commonwealth Financial, you can compare the effects of market volatilities on Greenville Federal and First Commonwealth 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 Greenville Federal with a short position of First Commonwealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenville Federal and First Commonwealth.
Diversification Opportunities for Greenville Federal and First Commonwealth
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Greenville and First is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Greenville Federal Financial and First Commonwealth Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Commonwealth and Greenville Federal 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 Greenville Federal Financial are associated (or correlated) with First Commonwealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Commonwealth has no effect on the direction of Greenville Federal i.e., Greenville Federal and First Commonwealth go up and down completely randomly.
Pair Corralation between Greenville Federal and First Commonwealth
Given the investment horizon of 90 days Greenville Federal is expected to generate 3.39 times less return on investment than First Commonwealth. In addition to that, Greenville Federal is 2.07 times more volatile than First Commonwealth Financial. It trades about 0.0 of its total potential returns per unit of risk. First Commonwealth Financial is currently generating about 0.03 per unit of volatility. If you would invest 1,105 in First Commonwealth Financial on January 13, 2025 and sell it today you would earn a total of 306.00 from holding First Commonwealth Financial or generate 27.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 46.57% |
| Values | Daily Returns |
Greenville Federal Financial vs. First Commonwealth Financial
Performance |
| Timeline |
| Greenville Federal |
| First Commonwealth |
Greenville Federal and First Commonwealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenville Federal and First Commonwealth
The main advantage of trading using opposite Greenville Federal and First Commonwealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenville Federal position performs unexpectedly, First Commonwealth 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 Commonwealth will offset losses from the drop in First Commonwealth's long position.| Greenville Federal vs. First Bankers Trustshares | Greenville Federal vs. First Ottawa Bancshares | Greenville Federal vs. Coastal Carolina Bancshares | Greenville Federal vs. Citizens Bancorp Investment |
| First Commonwealth vs. Great Southern Bancorp | First Commonwealth vs. Heritage Financial | First Commonwealth vs. Finward Bancorp | First Commonwealth vs. QCR Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |