Correlation Between Commercial Bancshares and First Financial
Can any of the company-specific risk be diversified away by investing in both Commercial Bancshares and First Financial 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 Commercial Bancshares and First Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commercial Bancshares OH and First Financial Bancorp, you can compare the effects of market volatilities on Commercial Bancshares and First Financial 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 Commercial Bancshares with a short position of First Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commercial Bancshares and First Financial.
Diversification Opportunities for Commercial Bancshares and First Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Commercial and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Commercial Bancshares OH and First Financial Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Financial Bancorp and Commercial Bancshares 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 Commercial Bancshares OH are associated (or correlated) with First Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Financial Bancorp has no effect on the direction of Commercial Bancshares i.e., Commercial Bancshares and First Financial go up and down completely randomly.
Pair Corralation between Commercial Bancshares and First Financial
If you would invest (100.00) in Commercial Bancshares OH on January 19, 2024 and sell it today you would earn a total of 100.00 from holding Commercial Bancshares OH or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Commercial Bancshares OH vs. First Financial Bancorp
Performance |
| Timeline |
| Commercial Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| First Financial Bancorp |
Commercial Bancshares and First Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commercial Bancshares and First Financial
The main advantage of trading using opposite Commercial Bancshares and First Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commercial Bancshares position performs unexpectedly, First Financial 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 Financial will offset losses from the drop in First Financial's long position.| Commercial Bancshares vs. Vacasa Inc | Commercial Bancshares vs. NI Holdings | Commercial Bancshares vs. Kaltura | Commercial Bancshares vs. FARO Technologies |
| First Financial vs. Home Bancorp | First Financial vs. Heritage Financial | First Financial vs. First Northwest Bancorp | First Financial vs. HomeTrust Bancshares |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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