Correlation Between Primis Financial and Amalgamated Bank

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

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

Diversification Opportunities for Primis Financial and Amalgamated Bank

0.65

Correlation Coefficient

Primis Financial  Amalgamated Bank

Poor diversification

The 3 months correlation between Primis and Amalgamated is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Primis Financial Corp and Amalgamated Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amalgamated Bank and Primis 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 Primis Financial Corp are associated (or correlated) with Amalgamated Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amalgamated Bank has no effect on the direction of Primis Financial i.e., Primis Financial and Amalgamated Bank go up and down completely randomly.

Pair Corralation between Primis Financial and Amalgamated Bank

Given the investment horizon of 90 days Primis Financial Corp is expected to generate 0.91 times more return on investment than Amalgamated Bank. However, Primis Financial Corp is 1.1 times less risky than Amalgamated Bank. It trades about 0.22 of its potential returns per unit of risk. Amalgamated Bank is currently generating about -0.02 per unit of risk. If you would invest  883.00  in Primis Financial Corp on May 4, 2025 and sell it today you would earn a total of  226.00  from holding Primis Financial Corp or generate 25.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Primis Financial Corp  vs.  Amalgamated Bank

Primis Financial Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Primis Financial Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Primis Financial unveiled solid returns over the last few months and may actually be approaching a breakup point.

Amalgamated Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amalgamated Bank has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Amalgamated Bank is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Primis Financial and Amalgamated Bank

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

The idea behind Primis Financial Corp and Amalgamated 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.