Correlation Between FNB Corp and First Bancorp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both FNB Corp and First 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 FNB Corp and First Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNB Corp and First Bancorp, you can compare the effects of market volatilities on FNB Corp and First 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 FNB Corp with a short position of First Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNB Corp and First Bancorp.

Diversification Opportunities for FNB Corp and First Bancorp

0.7
  Correlation Coefficient

Poor diversification

The 3 months correlation between FNB Corp and First is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding FNB Corp and First Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Bancorp and FNB Corp 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 FNB Corp are associated (or correlated) with First Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Bancorp has no effect on the direction of FNB Corp i.e., FNB Corp and First Bancorp go up and down completely randomly.

Pair Corralation between FNB Corp and First Bancorp

Considering the 90-day investment horizon FNB Corp is expected to generate 1.48 times less return on investment than First Bancorp. In addition to that, FNB Corp is 1.13 times more volatile than First Bancorp. It trades about 0.05 of its total potential returns per unit of risk. First Bancorp is currently generating about 0.08 per unit of volatility. If you would invest  2,918  in First Bancorp on February 27, 2022 and sell it today you would earn a total of  80.00  from holding First Bancorp or generate 2.74% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

FNB Corp  vs.  First Bancorp

 Performance (%) 
      Timeline 
FNB Corp 
FNB Corp Performance
0 of 100
Over the last 90 days FNB Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

FNB Corp Price Channel

First Bancorp 
First Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in First Bancorp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong essential indicators, First Bancorp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

First Price Channel

FNB Corp and First Bancorp Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with FNB Corp and First Bancorp

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

FNB Corp

Pair trading matchups for FNB Corp

The idea behind FNB Corp and First 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.

First Bancorp

Pair trading matchups for First Bancorp

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

Other Complementary Tools

Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go