Correlation Between Pioneer Bankcorp and FNB
Can any of the company-specific risk be diversified away by investing in both Pioneer Bankcorp and FNB 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 Pioneer Bankcorp and FNB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pioneer Bankcorp and FNB Inc, you can compare the effects of market volatilities on Pioneer Bankcorp and FNB 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 Pioneer Bankcorp with a short position of FNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Bankcorp and FNB.
Diversification Opportunities for Pioneer Bankcorp and FNB
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pioneer and FNB is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Pioneer Bankcorp and FNB Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB Inc and Pioneer Bankcorp 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 Pioneer Bankcorp are associated (or correlated) with FNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB Inc has no effect on the direction of Pioneer Bankcorp i.e., Pioneer Bankcorp and FNB go up and down completely randomly.
Pair Corralation between Pioneer Bankcorp and FNB
Given the investment horizon of 90 days Pioneer Bankcorp is expected to generate 2.94 times less return on investment than FNB. But when comparing it to its historical volatility, Pioneer Bankcorp is 2.38 times less risky than FNB. It trades about 0.09 of its potential returns per unit of risk. FNB Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,729 in FNB Inc on September 1, 2024 and sell it today you would earn a total of 771.00 from holding FNB Inc or generate 44.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 62.96% |
| Values | Daily Returns |
Pioneer Bankcorp vs. FNB Inc
Performance |
| Timeline |
| Pioneer Bankcorp |
| FNB Inc |
Pioneer Bankcorp and FNB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pioneer Bankcorp and FNB
The main advantage of trading using opposite Pioneer Bankcorp and FNB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Bankcorp position performs unexpectedly, FNB 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 FNB will offset losses from the drop in FNB's long position.| Pioneer Bankcorp vs. FineMark Holdings | Pioneer Bankcorp vs. Oxford Bank | Pioneer Bankcorp vs. Prime Meridian Holding | Pioneer Bankcorp vs. Oconee Financial |
| FNB vs. Century Financial Corp | FNB vs. Apollo Bancorp | FNB vs. Commercial National Financial | FNB vs. Eastern Michigan 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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