Correlation Between Affinity Bancshares and HV Bancorp
Can any of the company-specific risk be diversified away by investing in both Affinity Bancshares and HV Bancorp 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 Affinity Bancshares and HV Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affinity Bancshares and HV Bancorp, you can compare the effects of market volatilities on Affinity Bancshares and HV Bancorp 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 Affinity Bancshares with a short position of HV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity Bancshares and HV Bancorp.
Diversification Opportunities for Affinity Bancshares and HV Bancorp
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Affinity and HVBC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Affinity Bancshares and HV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HV Bancorp and Affinity 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 Affinity Bancshares are associated (or correlated) with HV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HV Bancorp has no effect on the direction of Affinity Bancshares i.e., Affinity Bancshares and HV Bancorp go up and down completely randomly.
Pair Corralation between Affinity Bancshares and HV Bancorp
If you would invest 1,670 in Affinity Bancshares on August 27, 2024 and sell it today you would earn a total of 482.00 from holding Affinity Bancshares or generate 28.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.54% |
| Values | Daily Returns |
Affinity Bancshares vs. HV Bancorp
Performance |
| Timeline |
| Affinity Bancshares |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Affinity Bancshares and HV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affinity Bancshares and HV Bancorp
The main advantage of trading using opposite Affinity Bancshares and HV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affinity Bancshares position performs unexpectedly, HV Bancorp 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 HV Bancorp will offset losses from the drop in HV Bancorp's long position.| Affinity Bancshares vs. Home Federal Bancorp | Affinity Bancshares vs. Magyar Bancorp | Affinity Bancshares vs. Community West Bancshares |
| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore Bancorp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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