Correlation Between Axos Financial and Hbt Financial
Can any of the company-specific risk be diversified away by investing in both Axos Financial and Hbt 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 Axos Financial and Hbt Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axos Financial and Hbt Financial, you can compare the effects of market volatilities on Axos Financial and Hbt 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 Axos Financial with a short position of Hbt Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axos Financial and Hbt Financial.
Diversification Opportunities for Axos Financial and Hbt Financial
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Axos and Hbt is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Axos Financial and Hbt Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hbt Financial and Axos Financial 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 Axos Financial are associated (or correlated) with Hbt Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hbt Financial has no effect on the direction of Axos Financial i.e., Axos Financial and Hbt Financial go up and down completely randomly.
Pair Corralation between Axos Financial and Hbt Financial
Allowing for the 90-day total investment horizon Axos Financial is expected to generate 1.47 times more return on investment than Hbt Financial. However, Axos Financial is 1.47 times more volatile than Hbt Financial. It trades about 0.08 of its potential returns per unit of risk. Hbt Financial is currently generating about 0.05 per unit of risk. If you would invest 4,187 in Axos Financial on August 31, 2024 and sell it today you would earn a total of 4,098 from holding Axos Financial or generate 97.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axos Financial vs. Hbt Financial
Performance |
| Timeline |
| Axos Financial |
| Hbt Financial |
Axos Financial and Hbt Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axos Financial and Hbt Financial
The main advantage of trading using opposite Axos Financial and Hbt Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axos Financial position performs unexpectedly, Hbt 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 Hbt Financial will offset losses from the drop in Hbt Financial's long position.| Axos Financial vs. National Bank Holdings | Axos Financial vs. Community West Bancshares | Axos Financial vs. First Capital | Axos Financial vs. Home Bancorp |
| Hbt Financial vs. First Capital | Hbt Financial vs. Civista Bancshares | Hbt Financial vs. Finward Bancorp | Hbt Financial vs. Heritage Financial |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |