Correlation Between BayCom Corp and Hingham Institution
Can any of the company-specific risk be diversified away by investing in both BayCom Corp and Hingham Institution 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 Hingham Institution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BayCom Corp and Hingham Institution for, you can compare the effects of market volatilities on BayCom Corp and Hingham Institution 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 Hingham Institution. Check out your portfolio center. Please also check ongoing floating volatility patterns of BayCom Corp and Hingham Institution.
Diversification Opportunities for BayCom Corp and Hingham Institution
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BayCom and Hingham is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BayCom Corp and Hingham Institution for in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hingham Institution for 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 Hingham Institution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hingham Institution for has no effect on the direction of BayCom Corp i.e., BayCom Corp and Hingham Institution go up and down completely randomly.
Pair Corralation between BayCom Corp and Hingham Institution
Given the investment horizon of 90 days BayCom Corp is expected to generate 1.47 times less return on investment than Hingham Institution. But when comparing it to its historical volatility, BayCom Corp is 1.26 times less risky than Hingham Institution. It trades about 0.12 of its potential returns per unit of risk. Hingham Institution for is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 16,783 in Hingham Institution for on September 3, 2024 and sell it today you would earn a total of 11,543 from holding Hingham Institution for or generate 68.78% 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. Hingham Institution for
Performance |
| Timeline |
| BayCom Corp |
| Hingham Institution for |
BayCom Corp and Hingham Institution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BayCom Corp and Hingham Institution
The main advantage of trading using opposite BayCom Corp and Hingham Institution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BayCom Corp position performs unexpectedly, Hingham Institution 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 Hingham Institution will offset losses from the drop in Hingham Institution'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 |
| Hingham Institution vs. First United | Hingham Institution vs. First Community | Hingham Institution vs. Greene County Bancorp | Hingham Institution vs. Community West Bancshares |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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