Correlation Between Premier Financial and Farmers
Can any of the company-specific risk be diversified away by investing in both Premier Financial and Farmers 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 Premier Financial and Farmers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Financial Corp and Farmers and Merchants, you can compare the effects of market volatilities on Premier Financial and Farmers 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 Premier Financial with a short position of Farmers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Financial and Farmers.
Diversification Opportunities for Premier Financial and Farmers
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Premier and Farmers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Premier Financial Corp and Farmers and Merchants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farmers and Merchants and Premier 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 Premier Financial Corp are associated (or correlated) with Farmers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farmers and Merchants has no effect on the direction of Premier Financial i.e., Premier Financial and Farmers go up and down completely randomly.
Pair Corralation between Premier Financial and Farmers
If you would invest (100.00) in Premier Financial Corp on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Premier Financial Corp 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 |
Premier Financial Corp vs. Farmers and Merchants
Performance |
| Timeline |
| Premier Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Farmers and Merchants |
Premier Financial and Farmers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Financial and Farmers
The main advantage of trading using opposite Premier Financial and Farmers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Financial position performs unexpectedly, Farmers 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 Farmers will offset losses from the drop in Farmers' long position.| Premier Financial vs. Weibo Corp | Premier Financial vs. Assurant | Premier Financial vs. Reservoir Media | Premier Financial vs. Radcom |
| Farmers vs. Bank Rakyat | Farmers vs. Lloyds Banking Group | Farmers vs. Western Alliance Bancorporation | Farmers vs. JAPAN POST BANK |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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