Correlation Between IShares Core and ServisFirst Bancshares

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

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

Diversification Opportunities for IShares Core and ServisFirst Bancshares

-0.81

Correlation Coefficient

IShares Core  ServisFirst Bancshares

Pay attention - limited upside

The 3 months correlation between IShares and ServisFirst is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding iShares Core SP and ServisFirst Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ServisFirst Bancshares and IShares Core 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 iShares Core SP are associated (or correlated) with ServisFirst Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ServisFirst Bancshares has no effect on the direction of IShares Core i.e., IShares Core and ServisFirst Bancshares go up and down completely randomly.

Pair Corralation between IShares Core and ServisFirst Bancshares

Considering the 90-day investment horizon iShares Core SP is expected to generate 0.37 times more return on investment than ServisFirst Bancshares. However, iShares Core SP is 2.69 times less risky than ServisFirst Bancshares. It trades about 0.11 of its potential returns per unit of risk. ServisFirst Bancshares is currently generating about -0.1 per unit of risk. If you would invest  64,443  in iShares Core SP on August 17, 2025 and sell it today you would earn a total of  3,088  from holding iShares Core SP or generate 4.79% return on investment over 90 days.

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

iShares Core SP  vs.  ServisFirst Bancshares

iShares Core SP

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Core SP are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, IShares Core is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

ServisFirst Bancshares

Risk-Adjusted Performance

Weakest

Over the last 90 days ServisFirst Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental drivers remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with IShares Core and ServisFirst Bancshares

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

The idea behind iShares Core SP and ServisFirst 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.