Correlation Between American National and Heritage Commerce
Can any of the company-specific risk be diversified away by investing in both American National and Heritage Commerce 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 Heritage Commerce 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 Heritage Commerce Corp, you can compare the effects of market volatilities on American National and Heritage Commerce 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 Heritage Commerce. Check out your portfolio center. Please also check ongoing floating volatility patterns of American National and Heritage Commerce.
Diversification Opportunities for American National and Heritage Commerce
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Heritage is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding American National Bankshares and Heritage Commerce Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heritage Commerce Corp 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 Heritage Commerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heritage Commerce Corp has no effect on the direction of American National i.e., American National and Heritage Commerce go up and down completely randomly.
Pair Corralation between American National and Heritage Commerce
If you would invest 923.00 in Heritage Commerce Corp on November 3, 2024 and sell it today you would earn a total of 46.00 from holding Heritage Commerce Corp or generate 4.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
American National Bankshares vs. Heritage Commerce Corp
Performance |
| Timeline |
| American National |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Heritage Commerce Corp |
American National and Heritage Commerce Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American National and Heritage Commerce
The main advantage of trading using opposite American National and Heritage Commerce positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American National position performs unexpectedly, Heritage Commerce 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 Heritage Commerce will offset losses from the drop in Heritage Commerce'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 |
| Heritage Commerce vs. Home Federal Bancorp | Heritage Commerce vs. First Financial Northwest | Heritage Commerce vs. First Northwest Bancorp | Heritage Commerce vs. First Capital |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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