Correlation Between Pioneer Bankcorp and 1st Capital

Can any of the company-specific risk be diversified away by investing in both Pioneer Bankcorp and 1st Capital 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 Pioneer Bankcorp and 1st Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pioneer Bankcorp and 1st Capital Bank, you can compare the effects of market volatilities on Pioneer Bankcorp and 1st Capital 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 Pioneer Bankcorp with a short position of 1st Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pioneer Bankcorp and 1st Capital.

Diversification Opportunities for Pioneer Bankcorp and 1st Capital

0.0

Correlation Coefficient

Pioneer Bankcorp  1st Capital

Pay attention - limited upside

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

Pair Corralation between Pioneer Bankcorp and 1st Capital

If you would invest  4,800  in Pioneer Bankcorp on December 27, 2024 and sell it today you would earn a total of  111.00  from holding Pioneer Bankcorp or generate 2.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Pioneer Bankcorp  vs.  1st Capital Bank

Pioneer Bankcorp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pioneer Bankcorp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward-looking signals, Pioneer Bankcorp is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

1st Capital Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days 1st Capital Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 1st Capital is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pioneer Bankcorp and 1st Capital

The main advantage of trading using opposite Pioneer Bankcorp and 1st Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pioneer Bankcorp position performs unexpectedly, 1st Capital 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 1st Capital will offset losses from the drop in 1st Capital's long position.

The idea behind Pioneer Bankcorp and 1st Capital Bank 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.