Correlation Between AMB Financial and First Community

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both AMB Financial and First Community 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 AMB Financial and First Community into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMB Financial Corp and First Community, you can compare the effects of market volatilities on AMB Financial and First Community 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 AMB Financial with a short position of First Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMB Financial and First Community.

Diversification Opportunities for AMB Financial and First Community

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between AMB and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMB Financial Corp and First Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Community and AMB 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 AMB Financial Corp are associated (or correlated) with First Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Community has no effect on the direction of AMB Financial i.e., AMB Financial and First Community go up and down completely randomly.

Pair Corralation between AMB Financial and First Community

If you would invest (100.00) in AMB Financial Corp on December 5, 2024 and sell it today you would earn a total of  100.00  from holding AMB Financial Corp or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

AMB Financial Corp  vs.  First Community

 Performance 
       Timeline  
AMB Financial Corp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days AMB Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, AMB Financial is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.
First Community 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days First Community has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

AMB Financial and First Community Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AMB Financial and First Community

The main advantage of trading using opposite AMB Financial and First Community positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMB Financial position performs unexpectedly, First Community 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 Community will offset losses from the drop in First Community's long position.
The idea behind AMB Financial Corp and First Community pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites