Correlation Between Apollo Bancorp and WVS Financial
Can any of the company-specific risk be diversified away by investing in both Apollo Bancorp and WVS 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 WVS 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 WVS Financial Corp, you can compare the effects of market volatilities on Apollo Bancorp and WVS 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 WVS Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apollo Bancorp and WVS Financial.
Diversification Opportunities for Apollo Bancorp and WVS Financial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Apollo and WVS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Apollo Bancorp and WVS Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WVS 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 WVS Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WVS Financial Corp has no effect on the direction of Apollo Bancorp i.e., Apollo Bancorp and WVS Financial go up and down completely randomly.
Pair Corralation between Apollo Bancorp and WVS Financial
Given the investment horizon of 90 days Apollo Bancorp is expected to generate 6.54 times more return on investment than WVS Financial. However, Apollo Bancorp is 6.54 times more volatile than WVS Financial Corp. It trades about 0.02 of its potential returns per unit of risk. WVS Financial Corp is currently generating about -0.11 per unit of risk. If you would invest 3,702 in Apollo Bancorp on August 26, 2024 and sell it today you would lose (52.00) from holding Apollo Bancorp or give up 1.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 14.6% |
| Values | Daily Returns |
Apollo Bancorp vs. WVS Financial Corp
Performance |
| Timeline |
| Apollo Bancorp |
| WVS Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Apollo Bancorp and WVS Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apollo Bancorp and WVS Financial
The main advantage of trading using opposite Apollo Bancorp and WVS Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apollo Bancorp position performs unexpectedly, WVS 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 WVS Financial will offset losses from the drop in WVS Financial'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 |
| WVS Financial vs. Pioneer Bankcorp | WVS Financial vs. Liberty Northwest Bancorp | WVS Financial vs. First Community | WVS Financial vs. Coeur dAlene Bancorp |
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 Stocks Directory module to find actively traded stocks across global markets.
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