Correlation Between First Capital and Tompkins Financial
Can any of the company-specific risk be diversified away by investing in both First Capital and Tompkins Financial 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 First Capital and Tompkins Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Capital and Tompkins Financial, you can compare the effects of market volatilities on First Capital and Tompkins Financial 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 First Capital with a short position of Tompkins Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Capital and Tompkins Financial.
Diversification Opportunities for First Capital and Tompkins Financial
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Tompkins is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding First Capital and Tompkins Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tompkins Financial and First Capital 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 First Capital are associated (or correlated) with Tompkins Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tompkins Financial has no effect on the direction of First Capital i.e., First Capital and Tompkins Financial go up and down completely randomly.
Pair Corralation between First Capital and Tompkins Financial
Given the investment horizon of 90 days First Capital is expected to generate 1.72 times more return on investment than Tompkins Financial. However, First Capital is 1.72 times more volatile than Tompkins Financial. It trades about 0.13 of its potential returns per unit of risk. Tompkins Financial is currently generating about 0.16 per unit of risk. If you would invest 4,215 in First Capital on October 11, 2025 and sell it today you would earn a total of 1,038 from holding First Capital or generate 24.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Capital vs. Tompkins Financial
Performance |
| Timeline |
| First Capital |
| Tompkins Financial |
First Capital and Tompkins Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Capital and Tompkins Financial
The main advantage of trading using opposite First Capital and Tompkins Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Capital position performs unexpectedly, Tompkins Financial 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 Tompkins Financial will offset losses from the drop in Tompkins Financial's long position.| First Capital vs. Landmark Bancorp | First Capital vs. CF Bankshares | First Capital vs. Finward Bancorp | First Capital vs. Eagle Bancorp Montana |
| Tompkins Financial vs. FirstSun Capital Bancorp | Tompkins Financial vs. Old Second Bancorp | Tompkins Financial vs. Burke Herbert Financial | Tompkins Financial vs. Texas Capital Bancshares |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |