Correlation Between Bayfirst Financial and FFB Bancorp

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

By analyzing existing cross correlation between Bayfirst Financial Corp and FFB Bancorp, you can compare the effects of market volatilities on Bayfirst Financial and FFB Bancorp 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 Bayfirst Financial with a short position of FFB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bayfirst Financial and FFB Bancorp.

Diversification Opportunities for Bayfirst Financial and FFB Bancorp

-0.43

Correlation Coefficient

Bayfirst Financial  FFB Bancorp

Very good diversification

The 3 months correlation between Bayfirst and FFB is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Bayfirst Financial Corp and FFB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FFB Bancorp and Bayfirst 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 Bayfirst Financial Corp are associated (or correlated) with FFB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FFB Bancorp has no effect on the direction of Bayfirst Financial i.e., Bayfirst Financial and FFB Bancorp go up and down completely randomly.

Pair Corralation between Bayfirst Financial and FFB Bancorp

Given the investment horizon of 90 days Bayfirst Financial Corp is expected to under-perform the FFB Bancorp. In addition to that, Bayfirst Financial is 5.4 times more volatile than FFB Bancorp. It trades about -0.09 of its total potential returns per unit of risk. FFB Bancorp is currently generating about 0.12 per unit of volatility. If you would invest  7,800  in FFB Bancorp on July 23, 2025 and sell it today you would earn a total of  650.00  from holding FFB Bancorp or generate 8.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Bayfirst Financial Corp  vs.  FFB Bancorp

Bayfirst Financial Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Bayfirst Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in November 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

FFB Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in FFB Bancorp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental drivers, FFB Bancorp may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Bayfirst Financial and FFB Bancorp

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

The idea behind Bayfirst Financial Corp and FFB Bancorp 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.