Correlation Between Partners Bank and First Hawaiian
Can any of the company-specific risk be diversified away by investing in both Partners Bank and First Hawaiian 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 Partners Bank and First Hawaiian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Partners Bank of and First Hawaiian, you can compare the effects of market volatilities on Partners Bank and First Hawaiian 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 Partners Bank with a short position of First Hawaiian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partners Bank and First Hawaiian.
Diversification Opportunities for Partners Bank and First Hawaiian
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Partners and First is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Partners Bank of and First Hawaiian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Hawaiian and Partners Bank 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 Partners Bank of are associated (or correlated) with First Hawaiian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Hawaiian has no effect on the direction of Partners Bank i.e., Partners Bank and First Hawaiian go up and down completely randomly.
Pair Corralation between Partners Bank and First Hawaiian
Given the investment horizon of 90 days Partners Bank of is expected to under-perform the First Hawaiian. But the pink sheet apears to be less risky and, when comparing its historical volatility, Partners Bank of is 1.54 times less risky than First Hawaiian. The pink sheet trades about -0.01 of its potential returns per unit of risk. The First Hawaiian is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,298 in First Hawaiian on September 3, 2024 and sell it today you would earn a total of 463.00 from holding First Hawaiian or generate 20.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Partners Bank of vs. First Hawaiian
Performance |
| Timeline |
| Partners Bank |
| First Hawaiian |
Partners Bank and First Hawaiian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Partners Bank and First Hawaiian
The main advantage of trading using opposite Partners Bank and First Hawaiian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Partners Bank position performs unexpectedly, First Hawaiian 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 Hawaiian will offset losses from the drop in First Hawaiian's long position.| Partners Bank vs. First Hawaiian | Partners Bank vs. Central Pacific Financial | Partners Bank vs. Territorial Bancorp | Partners Bank vs. Comerica |
| First Hawaiian vs. Territorial Bancorp | First Hawaiian vs. Bank of Hawaii | First Hawaiian vs. Financial Institutions | First Hawaiian vs. Heritage 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |