Correlation Between First Commonwealth and Lakeland Financial
Can any of the company-specific risk be diversified away by investing in both First Commonwealth and Lakeland 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 Commonwealth and Lakeland Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Commonwealth Financial and Lakeland Financial, you can compare the effects of market volatilities on First Commonwealth and Lakeland 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 Commonwealth with a short position of Lakeland Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Commonwealth and Lakeland Financial.
Diversification Opportunities for First Commonwealth and Lakeland Financial
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between First and Lakeland is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding First Commonwealth Financial and Lakeland Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Financial and First Commonwealth 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 Commonwealth Financial are associated (or correlated) with Lakeland Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Financial has no effect on the direction of First Commonwealth i.e., First Commonwealth and Lakeland Financial go up and down completely randomly.
Pair Corralation between First Commonwealth and Lakeland Financial
Considering the 90-day investment horizon First Commonwealth Financial is expected to generate 0.96 times more return on investment than Lakeland Financial. However, First Commonwealth Financial is 1.04 times less risky than Lakeland Financial. It trades about -0.08 of its potential returns per unit of risk. Lakeland Financial is currently generating about -0.13 per unit of risk. If you would invest 1,767 in First Commonwealth Financial on August 27, 2025 and sell it today you would lose (156.00) from holding First Commonwealth Financial or give up 8.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Commonwealth Financial vs. Lakeland Financial
Performance |
| Timeline |
| First Commonwealth |
| Lakeland Financial |
First Commonwealth and Lakeland Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Commonwealth and Lakeland Financial
The main advantage of trading using opposite First Commonwealth and Lakeland Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Commonwealth position performs unexpectedly, Lakeland 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 Lakeland Financial will offset losses from the drop in Lakeland Financial's long position.| First Commonwealth vs. Mineral Mountain Mining | First Commonwealth vs. Harmony Gold Mining | First Commonwealth vs. BioNTech SE | First Commonwealth vs. Schweiter Technologies AG |
| Lakeland Financial vs. Western Asset Investment | Lakeland Financial vs. SCI Engineered Materials | Lakeland Financial vs. Yulong Eco Materials | Lakeland Financial vs. Apartment Investment and |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |