Correlation Between NASB Financial and First Bankers
Can any of the company-specific risk be diversified away by investing in both NASB Financial and First Bankers 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 NASB Financial and First Bankers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NASB Financial and First Bankers Trustshares, you can compare the effects of market volatilities on NASB Financial and First Bankers 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 NASB Financial with a short position of First Bankers. Check out your portfolio center. Please also check ongoing floating volatility patterns of NASB Financial and First Bankers.
Diversification Opportunities for NASB Financial and First Bankers
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between NASB and First is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding NASB Financial and First Bankers Trustshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bankers Trustshares and NASB 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 NASB Financial are associated (or correlated) with First Bankers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bankers Trustshares has no effect on the direction of NASB Financial i.e., NASB Financial and First Bankers go up and down completely randomly.
Pair Corralation between NASB Financial and First Bankers
If you would invest 1,600 in First Bankers Trustshares on August 29, 2024 and sell it today you would earn a total of 85.00 from holding First Bankers Trustshares or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
NASB Financial vs. First Bankers Trustshares
Performance |
| Timeline |
| NASB Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Bankers Trustshares |
NASB Financial and First Bankers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NASB Financial and First Bankers
The main advantage of trading using opposite NASB Financial and First Bankers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NASB Financial position performs unexpectedly, First Bankers 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 Bankers will offset losses from the drop in First Bankers' long position.| NASB Financial vs. First Bankers Trustshares | NASB Financial vs. Greenville Federal Financial | NASB Financial vs. First Ottawa Bancshares | NASB Financial vs. Coastal Carolina Bancshares |
| First Bankers vs. Greenville Federal Financial | First Bankers vs. First Ottawa Bancshares | First Bankers vs. Coastal Carolina Bancshares | First Bankers vs. Citizens Bancorp Investment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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