Correlation Between LINKBANCORP and Ffbw

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

By analyzing existing cross correlation between LINKBANCORP and Ffbw Inc, you can compare the effects of market volatilities on LINKBANCORP and Ffbw 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 Ffbw. Check out your portfolio center. Please also check ongoing floating volatility patterns of LINKBANCORP and Ffbw.

Diversification Opportunities for LINKBANCORP and Ffbw

0.29

Correlation Coefficient

LINKBANCORP  Ffbw

Modest diversification

The 3 months correlation between LINKBANCORP and Ffbw is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding LINKBANCORP and Ffbw Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ffbw Inc 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 Ffbw. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ffbw Inc has no effect on the direction of LINKBANCORP i.e., LINKBANCORP and Ffbw go up and down completely randomly.

Pair Corralation between LINKBANCORP and Ffbw

Given the investment horizon of 90 days LINKBANCORP is expected to under-perform the Ffbw. In addition to that, LINKBANCORP is 2.57 times more volatile than Ffbw Inc. It trades about -0.16 of its total potential returns per unit of risk. Ffbw Inc is currently generating about -0.17 per unit of volatility. If you would invest  1,449  in Ffbw Inc on July 23, 2025 and sell it today you would lose (29.00) from holding Ffbw Inc or give up 2.0% of portfolio value over 90 days.

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

LINKBANCORP  vs.  Ffbw Inc

LINKBANCORP

Risk-Adjusted Performance

Weakest

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 newest stock price disturbance, may contribute to short-term losses for the investors.

Ffbw Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Ffbw Inc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable fundamental drivers, Ffbw is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with LINKBANCORP and Ffbw

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

The idea behind LINKBANCORP and Ffbw Inc 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.