Correlation Between Pinnacle Financial and First Internet

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

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

Diversification Opportunities for Pinnacle Financial and First Internet

0.91

Correlation Coefficient

Pinnacle Financial  First Internet

Almost no diversification

The 3 months correlation between Pinnacle and First is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Pinnacle Financial Partners and First Internet Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Internet Bancorp and Pinnacle 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 Pinnacle Financial Partners are associated (or correlated) with First Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Internet Bancorp has no effect on the direction of Pinnacle Financial i.e., Pinnacle Financial and First Internet go up and down completely randomly.

Pair Corralation between Pinnacle Financial and First Internet

Given the investment horizon of 90 days Pinnacle Financial Partners is expected to under-perform the First Internet. But the stock apears to be less risky and, when comparing its historical volatility, Pinnacle Financial Partners is 1.19 times less risky than First Internet. The stock trades about -0.19 of its potential returns per unit of risk. The First Internet Bancorp is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest  2,707  in First Internet Bancorp on July 19, 2025 and sell it today you would lose (620.00) from holding First Internet Bancorp or give up 22.9% of portfolio value over 90 days.

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

Pinnacle Financial Partners  vs.  First Internet Bancorp

Pinnacle Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days Pinnacle Financial Partners 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 technical and fundamental indicators remain relatively invariable which may send shares a bit higher in November 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

First Internet Bancorp

Risk-Adjusted Performance

Weakest

Over the last 90 days First Internet Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in November 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Pinnacle Financial and First Internet

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

The idea behind Pinnacle Financial Partners and First Internet 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.

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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.