Correlation Between MVB Financial and First Community

Can any of the company-specific risk be diversified away by investing in both MVB Financial and First Community 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 Community 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 Community, you can compare the effects of market volatilities on MVB Financial and First Community 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 Community. Check out your portfolio center. Please also check ongoing floating volatility patterns of MVB Financial and First Community.

Diversification Opportunities for MVB Financial and First Community

0.69

Correlation Coefficient

MVB Financial  First Community

Poor diversification

The 3 months correlation between MVB and First is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding MVB Financial Corp and First Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Community 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 Community. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Community has no effect on the direction of MVB Financial i.e., MVB Financial and First Community go up and down completely randomly.

Pair Corralation between MVB Financial and First Community

Given the investment horizon of 90 days MVB Financial Corp is expected to generate 0.97 times more return on investment than First Community. However, MVB Financial Corp is 1.04 times less risky than First Community. It trades about 0.5 of its potential returns per unit of risk. First Community is currently generating about -0.01 per unit of risk. If you would invest  2,402  in MVB Financial Corp on July 9, 2025 and sell it today you would earn a total of  258.00  from holding MVB Financial Corp or generate 10.74% return on investment over 90 days.

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

MVB Financial Corp  vs.  First Community

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 11 (%) 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 Community

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in First Community are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental indicators, First Community may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with MVB Financial and First Community

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

The idea behind MVB Financial Corp and First Community 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.

Check out your portfolio center.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.