Correlation Between John Marshall and LINKBANCORP

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

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

Diversification Opportunities for John Marshall and LINKBANCORP

0.79

Correlation Coefficient

John Marshall  LINKBANCORP

Poor diversification

The 3 months correlation between John and LINKBANCORP is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding John Marshall Bancorp and LINKBANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINKBANCORP and John Marshall 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 John Marshall Bancorp are associated (or correlated) with LINKBANCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINKBANCORP has no effect on the direction of John Marshall i.e., John Marshall and LINKBANCORP go up and down completely randomly.

Pair Corralation between John Marshall and LINKBANCORP

Given the investment horizon of 90 days John Marshall Bancorp is expected to generate 0.8 times more return on investment than LINKBANCORP. However, John Marshall Bancorp is 1.25 times less risky than LINKBANCORP. It trades about 0.15 of its potential returns per unit of risk. LINKBANCORP is currently generating about 0.06 per unit of risk. If you would invest  1,673  in John Marshall Bancorp on May 1, 2025 and sell it today you would earn a total of  247.00  from holding John Marshall Bancorp or generate 14.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

John Marshall Bancorp  vs.  LINKBANCORP

John Marshall Bancorp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in John Marshall Bancorp are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, John Marshall sustained solid returns over the last few months and may actually be approaching a breakup point.

LINKBANCORP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in LINKBANCORP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent forward-looking signals, LINKBANCORP may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with John Marshall and LINKBANCORP

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

The idea behind John Marshall Bancorp and LINKBANCORP 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.