Correlation Between FinVolution and First Commonwealth
Can any of the company-specific risk be diversified away by investing in both FinVolution and First Commonwealth 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 FinVolution and First Commonwealth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FinVolution Group and First Commonwealth Financial, you can compare the effects of market volatilities on FinVolution and First Commonwealth 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 FinVolution with a short position of First Commonwealth. Check out your portfolio center. Please also check ongoing floating volatility patterns of FinVolution and First Commonwealth.
Diversification Opportunities for FinVolution and First Commonwealth
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between FinVolution and First is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding FinVolution Group and First Commonwealth Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Commonwealth and FinVolution 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 FinVolution Group are associated (or correlated) with First Commonwealth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Commonwealth has no effect on the direction of FinVolution i.e., FinVolution and First Commonwealth go up and down completely randomly.
Pair Corralation between FinVolution and First Commonwealth
Given the investment horizon of 90 days FinVolution Group is expected to under-perform the First Commonwealth. In addition to that, FinVolution is 2.01 times more volatile than First Commonwealth Financial. It trades about -0.3 of its total potential returns per unit of risk. First Commonwealth Financial is currently generating about -0.07 per unit of volatility. If you would invest 1,741 in First Commonwealth Financial on August 24, 2025 and sell it today you would lose (130.00) from holding First Commonwealth Financial or give up 7.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
FinVolution Group vs. First Commonwealth Financial
Performance |
| Timeline |
| FinVolution Group |
| First Commonwealth |
FinVolution and First Commonwealth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FinVolution and First Commonwealth
The main advantage of trading using opposite FinVolution and First Commonwealth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FinVolution position performs unexpectedly, First Commonwealth 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 Commonwealth will offset losses from the drop in First Commonwealth's long position.| FinVolution vs. 360 Finance | FinVolution vs. Lufax Holding | FinVolution vs. Qudian Inc | FinVolution vs. X Financial Class |
| First Commonwealth vs. Northwest Bancshares | First Commonwealth vs. ST Bancorp | First Commonwealth vs. Stellar Bancorp, | First Commonwealth vs. City Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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