Correlation Between Provident Financial and Finward Bancorp

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

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

Diversification Opportunities for Provident Financial and Finward Bancorp

0.64

Correlation Coefficient

Provident Financial  Finward Bancorp

Poor diversification

The 3 months correlation between Provident and Finward is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Provident Financial Services and Finward Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finward Bancorp and Provident 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 Provident Financial Services are associated (or correlated) with Finward Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finward Bancorp has no effect on the direction of Provident Financial i.e., Provident Financial and Finward Bancorp go up and down completely randomly.

Pair Corralation between Provident Financial and Finward Bancorp

Considering the 90-day investment horizon Provident Financial is expected to generate 1.05 times less return on investment than Finward Bancorp. In addition to that, Provident Financial is 1.01 times more volatile than Finward Bancorp. It trades about 0.1 of its total potential returns per unit of risk. Finward Bancorp is currently generating about 0.1 per unit of volatility. If you would invest  3,077  in Finward Bancorp on October 10, 2025 and sell it today you would earn a total of  321.00  from holding Finward Bancorp or generate 10.43% return on investment over 90 days.

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

Provident Financial Services  vs.  Finward Bancorp

Provident Financial

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Provident Financial Services are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, Provident Financial may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Finward Bancorp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Finward Bancorp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Finward Bancorp may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with Provident Financial and Finward Bancorp

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

The idea behind Provident Financial Services and Finward 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.