Correlation Between First Guaranty and First Bancshares,

Can any of the company-specific risk be diversified away by investing in both First Guaranty and First Bancshares, 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 First Guaranty and First Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between First Guaranty Bancshares and The First Bancshares,, you can compare the effects of market volatilities on First Guaranty and First Bancshares, 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 First Guaranty with a short position of First Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Guaranty and First Bancshares,.

Diversification Opportunities for First Guaranty and First Bancshares,

0.75

Correlation Coefficient

First Guaranty  First Bancshares,

Poor diversification

The 3 months correlation between First and First is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding First Guaranty Bancshares and The First Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancshares, and First Guaranty 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 First Guaranty Bancshares are associated (or correlated) with First Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancshares, has no effect on the direction of First Guaranty i.e., First Guaranty and First Bancshares, go up and down completely randomly.

Pair Corralation between First Guaranty and First Bancshares,

Given the investment horizon of 90 days First Guaranty Bancshares is expected to generate 0.87 times more return on investment than First Bancshares,. However, First Guaranty Bancshares is 1.15 times less risky than First Bancshares,. It trades about 0.15 of its potential returns per unit of risk. The First Bancshares, is currently generating about 0.09 per unit of risk. If you would invest  1,057  in First Guaranty Bancshares on September 14, 2024 and sell it today you would earn a total of  223.00  from holding First Guaranty Bancshares or generate 21.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

First Guaranty Bancshares  vs.  The First Bancshares,

First Guaranty Bancshares

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Guaranty Bancshares are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental drivers, First Guaranty demonstrated solid returns over the last few months and may actually be approaching a breakup point.

First Bancshares,

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in The First Bancshares, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile primary indicators, First Bancshares, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with First Guaranty and First Bancshares,

The main advantage of trading using opposite First Guaranty and First Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Guaranty position performs unexpectedly, First Bancshares, 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 Bancshares, will offset losses from the drop in First Bancshares,'s long position.

The idea behind First Guaranty Bancshares and The First Bancshares, 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.