Correlation Between Baraboo Bancorporation and BEO Bancorp
Can any of the company-specific risk be diversified away by investing in both Baraboo Bancorporation and BEO 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 Baraboo Bancorporation and BEO Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baraboo Bancorporation and BEO Bancorp, you can compare the effects of market volatilities on Baraboo Bancorporation and BEO 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 Baraboo Bancorporation with a short position of BEO Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baraboo Bancorporation and BEO Bancorp.
Diversification Opportunities for Baraboo Bancorporation and BEO Bancorp
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Baraboo and BEO is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Baraboo Bancorp. and BEO Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEO Bancorp and Baraboo Bancorporation 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 Baraboo Bancorporation are associated (or correlated) with BEO Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEO Bancorp has no effect on the direction of Baraboo Bancorporation i.e., Baraboo Bancorporation and BEO Bancorp go up and down completely randomly.
Pair Corralation between Baraboo Bancorporation and BEO Bancorp
Given the investment horizon of 90 days Baraboo Bancorporation is expected to generate 2.8 times less return on investment than BEO Bancorp. In addition to that, Baraboo Bancorporation is 1.46 times more volatile than BEO Bancorp. It trades about 0.02 of its total potential returns per unit of risk. BEO Bancorp is currently generating about 0.1 per unit of volatility. If you would invest 4,800 in BEO Bancorp on September 2, 2024 and sell it today you would earn a total of 2,850 from holding BEO Bancorp or generate 59.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.12% |
| Values | Daily Returns |
Baraboo Bancorp. vs. BEO Bancorp
Performance |
| Timeline |
| Baraboo Bancorporation |
| BEO Bancorp |
Baraboo Bancorporation and BEO Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baraboo Bancorporation and BEO Bancorp
The main advantage of trading using opposite Baraboo Bancorporation and BEO Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baraboo Bancorporation position performs unexpectedly, BEO 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 BEO Bancorp will offset losses from the drop in BEO Bancorp's long position.| Baraboo Bancorporation vs. Andover Bancorp | Baraboo Bancorporation vs. Aozora Bank Ltd | Baraboo Bancorporation vs. Israel Discount Bank | Baraboo Bancorporation vs. Schweizerische Nationalbank |
| BEO Bancorp vs. Piraeus Bank SA | BEO Bancorp vs. Turkiye Garanti Bankasi | BEO Bancorp vs. Uwharrie Capital Corp |
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
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |