Correlation Between Mercer Bancorp and FNB

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

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

Diversification Opportunities for Mercer Bancorp and FNB

0.0

Correlation Coefficient

Mercer Bancorp  FNB

Pay attention - limited upside

The 3 months correlation between Mercer and FNB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mercer Bancorp and FNB Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNB Inc and Mercer 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 Mercer Bancorp are associated (or correlated) with FNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNB Inc has no effect on the direction of Mercer Bancorp i.e., Mercer Bancorp and FNB go up and down completely randomly.

Pair Corralation between Mercer Bancorp and FNB

If you would invest  2,100  in FNB Inc on August 26, 2025 and sell it today you would earn a total of  150.00  from holding FNB Inc or generate 7.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Mercer Bancorp  vs.  FNB Inc

Mercer Bancorp

Risk-Adjusted Performance

Mild

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

FNB Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in FNB Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak fundamental indicators, FNB may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Mercer Bancorp and FNB

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

The idea behind Mercer Bancorp and FNB 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.