Correlation Between First Northwest and Associated Banc
Can any of the company-specific risk be diversified away by investing in both First Northwest and Associated Banc 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 Northwest and Associated Banc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Northwest Bancorp and Associated Banc Corp, you can compare the effects of market volatilities on First Northwest and Associated Banc 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 Northwest with a short position of Associated Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Northwest and Associated Banc.
Diversification Opportunities for First Northwest and Associated Banc
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between First and Associated is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding First Northwest Bancorp and Associated Banc Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Associated Banc Corp and First Northwest 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 Northwest Bancorp are associated (or correlated) with Associated Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Associated Banc Corp has no effect on the direction of First Northwest i.e., First Northwest and Associated Banc go up and down completely randomly.
Pair Corralation between First Northwest and Associated Banc
Given the investment horizon of 90 days First Northwest Bancorp is expected to generate 1.12 times more return on investment than Associated Banc. However, First Northwest is 1.12 times more volatile than Associated Banc Corp. It trades about 0.22 of its potential returns per unit of risk. Associated Banc Corp is currently generating about 0.0 per unit of risk. If you would invest 744.00 in First Northwest Bancorp on August 29, 2025 and sell it today you would earn a total of 229.00 from holding First Northwest Bancorp or generate 30.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Northwest Bancorp vs. Associated Banc Corp
Performance |
| Timeline |
| First Northwest Bancorp |
| Associated Banc Corp |
First Northwest and Associated Banc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Northwest and Associated Banc
The main advantage of trading using opposite First Northwest and Associated Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Northwest position performs unexpectedly, Associated Banc 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 Associated Banc will offset losses from the drop in Associated Banc's long position.| First Northwest vs. G III Apparel Group | First Northwest vs. Xtera Communications | First Northwest vs. B Communications | First Northwest vs. Singapore Telecommunications Limited |
| Associated Banc vs. Talis Biomedical Corp | Associated Banc vs. Dicks Sporting Goods | Associated Banc vs. Academy Sports Outdoors | Associated Banc vs. SIGNA Sports United |
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 CEOs Directory module to screen CEOs from public companies around the world.
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