Correlation Between Apollo Bancorp and Pinnacle Bancshares
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp and Pinnacle Bancshares 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 Pinnacle Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apollo Bancorp and Pinnacle Bancshares, you can compare the effects of market volatilities on Apollo Bancorp and Pinnacle Bancshares 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 Pinnacle Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and Pinnacle Bancshares.
Diversification Opportunities for Apollo Bancorp and Pinnacle Bancshares
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Apollo and Pinnacle is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp and Pinnacle Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pinnacle 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 Pinnacle Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pinnacle Bancshares has no effect on the direction of Apollo Bancorp i.e., Apollo Bancorp and Pinnacle Bancshares go up and down completely randomly.
Pair Corralation between Apollo Bancorp and Pinnacle Bancshares
If you would invest 3,725 in Apollo Bancorp on August 26, 2024 and sell it today you would lose (75.00) from holding Apollo Bancorp or give up 2.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.45% |
| Values | Daily Returns |
Apollo Bancorp vs. Pinnacle Bancshares
Performance |
| Timeline |
| Apollo Bancorp |
| Pinnacle Bancshares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apollo Bancorp and Pinnacle Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Bancorp and Pinnacle Bancshares
The main advantage of trading using opposite Apollo Bancorp and Pinnacle Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp position performs unexpectedly, Pinnacle Bancshares 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 Pinnacle Bancshares will offset losses from the drop in Pinnacle Bancshares' 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 |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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