Correlation Between Marathon Bancorp, and First Capital

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

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

Diversification Opportunities for Marathon Bancorp, and First Capital

-0.71

Correlation Coefficient

Marathon Bancorp,  First Capital

Pay attention - limited upside

The 3 months correlation between Marathon and First is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Marathon Bancorp, Common and First Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Capital and Marathon Bancorp, 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 Marathon Bancorp, Common are associated (or correlated) with First Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Capital has no effect on the direction of Marathon Bancorp, i.e., Marathon Bancorp, and First Capital go up and down completely randomly.

Pair Corralation between Marathon Bancorp, and First Capital

Given the investment horizon of 90 days Marathon Bancorp, Common is expected to under-perform the First Capital. In addition to that, Marathon Bancorp, is 1.44 times more volatile than First Capital. It trades about -0.1 of its total potential returns per unit of risk. First Capital is currently generating about 0.21 per unit of volatility. If you would invest  3,413  in First Capital on February 11, 2025 and sell it today you would earn a total of  1,355  from holding First Capital or generate 39.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Marathon Bancorp, Common  vs.  First Capital

Marathon Bancorp, Common

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marathon Bancorp, Common has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in June 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

First Capital

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in First Capital are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, First Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Marathon Bancorp, and First Capital

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

The idea behind Marathon Bancorp, Common and First Capital 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.