Correlation Between Apollo Bancorp and First Ottawa
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp and First Ottawa 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 First Ottawa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Bancorp and First Ottawa Bancshares, you can compare the effects of market volatilities on Apollo Bancorp and First Ottawa 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 First Ottawa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and First Ottawa.
Diversification Opportunities for Apollo Bancorp and First Ottawa
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apollo and First is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp and First Ottawa Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Ottawa Bancshares 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 First Ottawa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Ottawa Bancshares has no effect on the direction of Apollo Bancorp i.e., Apollo Bancorp and First Ottawa go up and down completely randomly.
Pair Corralation between Apollo Bancorp and First Ottawa
Given the investment horizon of 90 days Apollo Bancorp is expected to generate 11.75 times less return on investment than First Ottawa. In addition to that, Apollo Bancorp is 1.31 times more volatile than First Ottawa Bancshares. It trades about 0.01 of its total potential returns per unit of risk. First Ottawa Bancshares is currently generating about 0.11 per unit of volatility. If you would invest 9,243 in First Ottawa Bancshares on August 29, 2024 and sell it today you would earn a total of 2,758 from holding First Ottawa Bancshares or generate 29.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.91% |
| Values | Daily Returns |
Apollo Bancorp vs. First Ottawa Bancshares
Performance |
| Timeline |
| Apollo Bancorp |
| First Ottawa Bancshares |
Apollo Bancorp and First Ottawa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Bancorp and First Ottawa
The main advantage of trading using opposite Apollo Bancorp and First Ottawa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp position performs unexpectedly, First Ottawa 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 Ottawa will offset losses from the drop in First Ottawa's long position.| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial Corp |
| First Ottawa vs. Century Next Financial | First Ottawa vs. Citizens Financial Corp | First Ottawa vs. Triad Business Bank | First Ottawa vs. First Bankers Trustshares |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |