Correlation Between ServisFirst Bancshares and International Bancshares
Can any of the company-specific risk be diversified away by investing in both ServisFirst Bancshares and International Bancshares 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 ServisFirst Bancshares and International Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ServisFirst Bancshares and International Bancshares, you can compare the effects of market volatilities on ServisFirst Bancshares and International Bancshares 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 ServisFirst Bancshares with a short position of International Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ServisFirst Bancshares and International Bancshares.
Diversification Opportunities for ServisFirst Bancshares and International Bancshares
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ServisFirst and International is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ServisFirst Bancshares and International Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Bancshares and ServisFirst Bancshares 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 ServisFirst Bancshares are associated (or correlated) with International Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Bancshares has no effect on the direction of ServisFirst Bancshares i.e., ServisFirst Bancshares and International Bancshares go up and down completely randomly.
Pair Corralation between ServisFirst Bancshares and International Bancshares
Given the investment horizon of 90 days ServisFirst Bancshares is expected to under-perform the International Bancshares. In addition to that, ServisFirst Bancshares is 1.33 times more volatile than International Bancshares. It trades about -0.11 of its total potential returns per unit of risk. International Bancshares is currently generating about -0.06 per unit of volatility. If you would invest 7,015 in International Bancshares on August 13, 2025 and sell it today you would lose (432.00) from holding International Bancshares or give up 6.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ServisFirst Bancshares vs. International Bancshares
Performance |
| Timeline |
| ServisFirst Bancshares |
| International Bancshares |
ServisFirst Bancshares and International Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ServisFirst Bancshares and International Bancshares
The main advantage of trading using opposite ServisFirst Bancshares and International Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ServisFirst Bancshares position performs unexpectedly, International Bancshares 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 International Bancshares will offset losses from the drop in International Bancshares' long position.| ServisFirst Bancshares vs. Grupo Aval | ServisFirst Bancshares vs. BancFirst | ServisFirst Bancshares vs. Associated Banc Corp | ServisFirst Bancshares vs. International Bancshares |
| International Bancshares vs. Webster Financial | International Bancshares vs. Axos Financial | International Bancshares vs. Cadence Bancorp | International Bancshares vs. First Financial Bankshares |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |