Correlation Between MVB Financial and First Capital

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

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

Diversification Opportunities for MVB Financial and First Capital

-0.72

Correlation Coefficient

MVB Financial  First Capital

Pay attention - limited upside

The 3 months correlation between MVB and First is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding MVB Financial Corp and First Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Capital and MVB Financial 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 MVB Financial Corp 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 MVB Financial i.e., MVB Financial and First Capital go up and down completely randomly.

Pair Corralation between MVB Financial and First Capital

Given the investment horizon of 90 days MVB Financial Corp is expected to generate 0.62 times more return on investment than First Capital. However, MVB Financial Corp is 1.62 times less risky than First Capital. It trades about 0.2 of its potential returns per unit of risk. First Capital is currently generating about -0.12 per unit of risk. If you would invest  1,967  in MVB Financial Corp on May 26, 2025 and sell it today you would earn a total of  433.00  from holding MVB Financial Corp or generate 22.01% return on investment over 90 days.

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

MVB Financial Corp  vs.  First Capital

MVB Financial Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MVB Financial Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental drivers, MVB Financial reported solid returns over the last few months and may actually be approaching a breakup point.

First Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days First Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with MVB Financial and First Capital

The main advantage of trading using opposite MVB Financial and First Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MVB Financial 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 MVB Financial Corp 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.