Correlation Between Apollo Bancorp and Bayfirst Financial
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp and Bayfirst Financial 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 Apollo Bancorp and Bayfirst Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Bancorp and Bayfirst Financial Corp, you can compare the effects of market volatilities on Apollo Bancorp and Bayfirst Financial 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 Apollo Bancorp with a short position of Bayfirst Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and Bayfirst Financial.
Diversification Opportunities for Apollo Bancorp and Bayfirst Financial
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apollo and Bayfirst is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp and Bayfirst Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayfirst Financial Corp and Apollo 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 Apollo Bancorp are associated (or correlated) with Bayfirst Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayfirst Financial Corp has no effect on the direction of Apollo Bancorp i.e., Apollo Bancorp and Bayfirst Financial go up and down completely randomly.
Pair Corralation between Apollo Bancorp and Bayfirst Financial
Given the investment horizon of 90 days Apollo Bancorp is expected to generate 0.16 times more return on investment than Bayfirst Financial. However, Apollo Bancorp is 6.15 times less risky than Bayfirst Financial. It trades about 0.24 of its potential returns per unit of risk. Bayfirst Financial Corp is currently generating about -0.07 per unit of risk. If you would invest 3,647 in Apollo Bancorp on September 3, 2024 and sell it today you would earn a total of 53.00 from holding Apollo Bancorp or generate 1.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Apollo Bancorp vs. Bayfirst Financial Corp
Performance |
Timeline |
Apollo Bancorp |
Bayfirst Financial Corp |
Apollo Bancorp and Bayfirst Financial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Apollo Bancorp and Bayfirst Financial
The main advantage of trading using opposite Apollo Bancorp and Bayfirst Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp position performs unexpectedly, Bayfirst Financial 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 Bayfirst Financial will offset losses from the drop in Bayfirst Financial's long position.Apollo Bancorp vs. First Hawaiian | Apollo Bancorp vs. Central Pacific Financial | Apollo Bancorp vs. Territorial Bancorp | Apollo Bancorp vs. Comerica |
Bayfirst Financial vs. Home Federal Bancorp | Bayfirst Financial vs. LINKBANCORP | Bayfirst Financial vs. Affinity Bancshares | Bayfirst Financial vs. BayCom Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |