Correlation Between Avidbank Holdings and Blackhawk Bancorp
Can any of the company-specific risk be diversified away by investing in both Avidbank Holdings and Blackhawk Bancorp 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 Avidbank Holdings and Blackhawk Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avidbank Holdings and Blackhawk Bancorp, you can compare the effects of market volatilities on Avidbank Holdings and Blackhawk Bancorp 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 Avidbank Holdings with a short position of Blackhawk Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avidbank Holdings and Blackhawk Bancorp.
Diversification Opportunities for Avidbank Holdings and Blackhawk Bancorp
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avidbank and Blackhawk is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Avidbank Holdings and Blackhawk Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackhawk Bancorp and Avidbank Holdings 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 Avidbank Holdings are associated (or correlated) with Blackhawk Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackhawk Bancorp has no effect on the direction of Avidbank Holdings i.e., Avidbank Holdings and Blackhawk Bancorp go up and down completely randomly.
Pair Corralation between Avidbank Holdings and Blackhawk Bancorp
Given the investment horizon of 90 days Avidbank Holdings is expected to generate 2.79 times less return on investment than Blackhawk Bancorp. But when comparing it to its historical volatility, Avidbank Holdings is 1.64 times less risky than Blackhawk Bancorp. It trades about 0.12 of its potential returns per unit of risk. Blackhawk Bancorp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 2,793 in Blackhawk Bancorp on August 26, 2024 and sell it today you would earn a total of 557.00 from holding Blackhawk Bancorp or generate 19.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 14.21% |
| Values | Daily Returns |
Avidbank Holdings vs. Blackhawk Bancorp
Performance |
| Timeline |
| Avidbank Holdings |
| Blackhawk Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avidbank Holdings and Blackhawk Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avidbank Holdings and Blackhawk Bancorp
The main advantage of trading using opposite Avidbank Holdings and Blackhawk Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avidbank Holdings position performs unexpectedly, Blackhawk Bancorp 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 Blackhawk Bancorp will offset losses from the drop in Blackhawk Bancorp's long position.| Avidbank Holdings vs. Invesco High Income | Avidbank Holdings vs. Blackrock Muniholdings Ny | Avidbank Holdings vs. MFS Investment Grade | Avidbank Holdings vs. Federated Premier Municipal |
| Blackhawk Bancorp vs. CCSB Financial Corp | Blackhawk Bancorp vs. Bank of Utica | Blackhawk Bancorp vs. First Community Financial | Blackhawk Bancorp vs. BEO 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |