Correlation Between OceanFirst Financial and FirstSun Capital

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

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

Diversification Opportunities for OceanFirst Financial and FirstSun Capital

0.06

Correlation Coefficient

OceanFirst Financial  FirstSun Capital

Significant diversification

The 3 months correlation between OceanFirst and FirstSun is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding OceanFirst Financial Corp and FirstSun Capital Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstSun Capital Bancorp and OceanFirst 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 OceanFirst Financial Corp are associated (or correlated) with FirstSun Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstSun Capital Bancorp has no effect on the direction of OceanFirst Financial i.e., OceanFirst Financial and FirstSun Capital go up and down completely randomly.

Pair Corralation between OceanFirst Financial and FirstSun Capital

Given the investment horizon of 90 days OceanFirst Financial Corp is expected to generate 0.7 times more return on investment than FirstSun Capital. However, OceanFirst Financial Corp is 1.42 times less risky than FirstSun Capital. It trades about 0.0 of its potential returns per unit of risk. FirstSun Capital Bancorp is currently generating about -0.06 per unit of risk. If you would invest  1,833  in OceanFirst Financial Corp on August 27, 2025 and sell it today you would lose (13.00) from holding OceanFirst Financial Corp or give up 0.71% of portfolio value over 90 days.

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

OceanFirst Financial Corp  vs.  FirstSun Capital Bancorp

OceanFirst Financial Corp

Risk-Adjusted Performance

Weak

Over the last 90 days OceanFirst Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, OceanFirst Financial is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

FirstSun Capital Bancorp

Risk-Adjusted Performance

Weakest

Over the last 90 days FirstSun Capital Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with OceanFirst Financial and FirstSun Capital

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

The idea behind OceanFirst Financial Corp and FirstSun Capital Bancorp 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.