Correlation Between LINKBANCORP and First Bancshares,

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

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

Diversification Opportunities for LINKBANCORP and First Bancshares,

-0.28

Correlation Coefficient

LINKBANCORP  First Bancshares,

Very good diversification

The 3 months correlation between LINKBANCORP and First is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding LINKBANCORP and The First Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancshares, and LINKBANCORP 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 LINKBANCORP are associated (or correlated) with First Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancshares, has no effect on the direction of LINKBANCORP i.e., LINKBANCORP and First Bancshares, go up and down completely randomly.

Pair Corralation between LINKBANCORP and First Bancshares,

If you would invest  645.00  in LINKBANCORP on February 20, 2025 and sell it today you would earn a total of  59.00  from holding LINKBANCORP or generate 9.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.35%
Values	Daily Returns

LINKBANCORP  vs.  The First Bancshares,

LINKBANCORP

Risk-Adjusted Performance

Very Weak

Over the last 90 days LINKBANCORP has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong forward-looking signals, LINKBANCORP is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

First Bancshares,

Risk-Adjusted Performance

Very Weak

Over the last 90 days The First Bancshares, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in June 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with LINKBANCORP and First Bancshares,

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

The idea behind LINKBANCORP and The First 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.