Correlation Between BayCom Corp and Guaranty Bancshares,
Can any of the company-specific risk be diversified away by investing in both BayCom Corp and Guaranty 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 BayCom Corp and Guaranty Bancshares, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BayCom Corp and Guaranty Bancshares,, you can compare the effects of market volatilities on BayCom Corp and Guaranty 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 BayCom Corp with a short position of Guaranty Bancshares,. Check out your portfolio center. Please also check ongoing floating volatility patterns of BayCom Corp and Guaranty Bancshares,.
Diversification Opportunities for BayCom Corp and Guaranty Bancshares,
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BayCom and Guaranty is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding BayCom Corp and Guaranty Bancshares, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guaranty Bancshares, and BayCom Corp 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 BayCom Corp are associated (or correlated) with Guaranty Bancshares,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guaranty Bancshares, has no effect on the direction of BayCom Corp i.e., BayCom Corp and Guaranty Bancshares, go up and down completely randomly.
Pair Corralation between BayCom Corp and Guaranty Bancshares,
Given the investment horizon of 90 days BayCom Corp is expected to generate 0.85 times more return on investment than Guaranty Bancshares,. However, BayCom Corp is 1.18 times less risky than Guaranty Bancshares,. It trades about 0.17 of its potential returns per unit of risk. Guaranty Bancshares, is currently generating about 0.1 per unit of risk. If you would invest 1,916 in BayCom Corp on September 3, 2024 and sell it today you would earn a total of 983.00 from holding BayCom Corp or generate 51.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BayCom Corp vs. Guaranty Bancshares,
Performance |
| Timeline |
| BayCom Corp |
| Guaranty Bancshares, |
BayCom Corp and Guaranty Bancshares, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BayCom Corp and Guaranty Bancshares,
The main advantage of trading using opposite BayCom Corp and Guaranty Bancshares, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BayCom Corp position performs unexpectedly, Guaranty 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 Guaranty Bancshares, will offset losses from the drop in Guaranty Bancshares,'s long position.| BayCom Corp vs. Home Federal Bancorp | BayCom Corp vs. LINKBANCORP | BayCom Corp vs. Community West Bancshares | BayCom Corp vs. First Northwest Bancorp |
| Guaranty Bancshares, vs. JPMorgan Chase Co | Guaranty Bancshares, vs. Citigroup | Guaranty Bancshares, vs. Wells Fargo | Guaranty Bancshares, vs. Toronto Dominion Bank |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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