Correlation Between Andover Bancorp and Schweizerische Nationalbank

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Can any of the company-specific risk be diversified away by investing in both Andover Bancorp and Schweizerische Nationalbank 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 Andover Bancorp and Schweizerische Nationalbank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andover Bancorp and Schweizerische Nationalbank, you can compare the effects of market volatilities on Andover Bancorp and Schweizerische Nationalbank 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 Andover Bancorp with a short position of Schweizerische Nationalbank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andover Bancorp and Schweizerische Nationalbank.

Diversification Opportunities for Andover Bancorp and Schweizerische Nationalbank

AndoverSchweizerischeDiversified AwayAndoverSchweizerischeDiversified Away100%
-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between Andover and Schweizerische is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Andover Bancorp and Schweizerische Nationalbank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schweizerische Nationalbank and Andover Bancorp 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 Andover Bancorp are associated (or correlated) with Schweizerische Nationalbank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schweizerische Nationalbank has no effect on the direction of Andover Bancorp i.e., Andover Bancorp and Schweizerische Nationalbank go up and down completely randomly.

Pair Corralation between Andover Bancorp and Schweizerische Nationalbank

Given the investment horizon of 90 days Andover Bancorp is expected to generate 0.35 times more return on investment than Schweizerische Nationalbank. However, Andover Bancorp is 2.87 times less risky than Schweizerische Nationalbank. It trades about 0.0 of its potential returns per unit of risk. Schweizerische Nationalbank is currently generating about -0.22 per unit of risk. If you would invest  1,970  in Andover Bancorp on November 27, 2024 and sell it today you would earn a total of  0.00  from holding Andover Bancorp or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Andover Bancorp  vs.  Schweizerische Nationalbank

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -505101520
JavaScript chart by amCharts 3.21.15ANDC SWZNF
       Timeline  
Andover Bancorp 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Andover Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
JavaScript chart by amCharts 3.21.15AugSepOctNovJanFebSepOctNovJanFeb1920212223
Schweizerische Nationalbank 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Schweizerische Nationalbank are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Schweizerische Nationalbank is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb3,6003,7003,8003,9004,000

Andover Bancorp and Schweizerische Nationalbank Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-11.13-8.33-5.54-2.750.032.745.578.4111.2414.07 0.050.100.15
JavaScript chart by amCharts 3.21.15ANDC SWZNF
       Returns  

Pair Trading with Andover Bancorp and Schweizerische Nationalbank

The main advantage of trading using opposite Andover Bancorp and Schweizerische Nationalbank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andover Bancorp position performs unexpectedly, Schweizerische Nationalbank 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 Schweizerische Nationalbank will offset losses from the drop in Schweizerische Nationalbank's long position.
The idea behind Andover Bancorp and Schweizerische Nationalbank pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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