Correlation Between American National and First Of
Can any of the company-specific risk be diversified away by investing in both American National and First Of 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 American National and First Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American National Bankshares and First of Long, you can compare the effects of market volatilities on American National and First Of 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 American National with a short position of First Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of American National and First Of.
Diversification Opportunities for American National and First Of
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American National Bankshares and First of Long in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First of Long and American National 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 American National Bankshares are associated (or correlated) with First Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First of Long has no effect on the direction of American National i.e., American National and First Of go up and down completely randomly.
Pair Corralation between American National and First Of
If you would invest 1,228 in First of Long on November 28, 2024 and sell it today you would earn a total of 68.00 from holding First of Long or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
American National Bankshares vs. First of Long
Performance |
| Timeline |
| American National |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| First of Long |
American National and First Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American National and First Of
The main advantage of trading using opposite American National and First Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American National position performs unexpectedly, First Of 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 Of will offset losses from the drop in First Of's long position.| American National vs. First Northwest Bancorp | American National vs. Community West Bancshares | American National vs. First Financial Northwest | American National vs. Great Southern Bancorp |
| First Of vs. Great Southern Bancorp | First Of vs. Enterprise Bancorp | First Of vs. Home Bancorp | First Of vs. Community West Bancshares |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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