Correlation Between Affinity Bancshares and Stellar Bancorp,
Can any of the company-specific risk be diversified away by investing in both Affinity Bancshares and Stellar 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 Stellar 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 Stellar Bancorp,, you can compare the effects of market volatilities on Affinity Bancshares and Stellar 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 Stellar Bancorp,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affinity Bancshares and Stellar Bancorp,.
Diversification Opportunities for Affinity Bancshares and Stellar Bancorp,
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Affinity and Stellar is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Affinity Bancshares and Stellar Bancorp, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellar 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 Stellar Bancorp,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellar Bancorp, has no effect on the direction of Affinity Bancshares i.e., Affinity Bancshares and Stellar Bancorp, go up and down completely randomly.
Pair Corralation between Affinity Bancshares and Stellar Bancorp,
Given the investment horizon of 90 days Affinity Bancshares is expected to generate 13.94 times less return on investment than Stellar Bancorp,. But when comparing it to its historical volatility, Affinity Bancshares is 3.91 times less risky than Stellar Bancorp,. It trades about 0.06 of its potential returns per unit of risk. Stellar Bancorp, is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,781 in Stellar Bancorp, on August 28, 2024 and sell it today you would earn a total of 406.00 from holding Stellar Bancorp, or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affinity Bancshares vs. Stellar Bancorp,
Performance |
| Timeline |
| Affinity Bancshares |
| Stellar Bancorp, |
Affinity Bancshares and Stellar Bancorp, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affinity Bancshares and Stellar Bancorp,
The main advantage of trading using opposite Affinity Bancshares and Stellar Bancorp, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affinity Bancshares position performs unexpectedly, Stellar 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 Stellar Bancorp, will offset losses from the drop in Stellar Bancorp,'s long position.| Affinity Bancshares vs. Home Federal Bancorp | Affinity Bancshares vs. Magyar Bancorp | Affinity Bancshares vs. Community West Bancshares |
| Stellar Bancorp, vs. LINKBANCORP | Stellar Bancorp, vs. Coastal Financial Corp | Stellar Bancorp, vs. Finward Bancorp | Stellar Bancorp, vs. CrossFirst 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |