Correlation Between First Niles and Logansport Financial

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

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

Diversification Opportunities for First Niles and Logansport Financial

0.14

Correlation Coefficient

First Niles  Logansport Financial

Average diversification

The 3 months correlation between First and Logansport is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding First Niles Financial and Logansport Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logansport Financial Corp and First Niles 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 Niles Financial are associated (or correlated) with Logansport Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logansport Financial Corp has no effect on the direction of First Niles i.e., First Niles and Logansport Financial go up and down completely randomly.

Pair Corralation between First Niles and Logansport Financial

Given the investment horizon of 90 days First Niles Financial is expected to under-perform the Logansport Financial. In addition to that, First Niles is 1.14 times more volatile than Logansport Financial Corp. It trades about -0.09 of its total potential returns per unit of risk. Logansport Financial Corp is currently generating about 0.06 per unit of volatility. If you would invest  2,867  in Logansport Financial Corp on July 20, 2025 and sell it today you would earn a total of  113.00  from holding Logansport Financial Corp or generate 3.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	88.89%
Values	Daily Returns

First Niles Financial  vs.  Logansport Financial Corp

First Niles Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days First Niles Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Logansport Financial Corp

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Logansport Financial Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady technical and fundamental indicators, Logansport Financial may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with First Niles and Logansport Financial

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

The idea behind First Niles Financial and Logansport Financial Corp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.