Correlation Between BayCom Corp and HV Bancorp
Can any of the company-specific risk be diversified away by investing in both BayCom Corp and HV 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 BayCom Corp and HV Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BayCom Corp and HV Bancorp, you can compare the effects of market volatilities on BayCom Corp and HV 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 BayCom Corp with a short position of HV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BayCom Corp and HV Bancorp.
Diversification Opportunities for BayCom Corp and HV Bancorp
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BayCom and HVBC is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding BayCom Corp and HV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HV Bancorp 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 HV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HV Bancorp has no effect on the direction of BayCom Corp i.e., BayCom Corp and HV Bancorp go up and down completely randomly.
Pair Corralation between BayCom Corp and HV Bancorp
If you would invest 2,232 in BayCom Corp on November 2, 2024 and sell it today you would earn a total of 620.00 from holding BayCom Corp or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.97% |
| Values | Daily Returns |
BayCom Corp vs. HV Bancorp
Performance |
| Timeline |
| BayCom Corp |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BayCom Corp and HV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BayCom Corp and HV Bancorp
The main advantage of trading using opposite BayCom Corp and HV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BayCom Corp position performs unexpectedly, HV 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 HV Bancorp will offset losses from the drop in HV Bancorp'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 |
| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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