Correlation Between BEO Bancorp and Lewis Clark
Can any of the company-specific risk be diversified away by investing in both BEO Bancorp and Lewis Clark 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 BEO Bancorp and Lewis Clark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEO Bancorp and Lewis Clark Bancorp, you can compare the effects of market volatilities on BEO Bancorp and Lewis Clark 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 BEO Bancorp with a short position of Lewis Clark. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEO Bancorp and Lewis Clark.
Diversification Opportunities for BEO Bancorp and Lewis Clark
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BEO and Lewis is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding BEO Bancorp and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp and BEO Bancorp 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 BEO Bancorp are associated (or correlated) with Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of BEO Bancorp i.e., BEO Bancorp and Lewis Clark go up and down completely randomly.
Pair Corralation between BEO Bancorp and Lewis Clark
Given the investment horizon of 90 days BEO Bancorp is expected to generate 3.88 times less return on investment than Lewis Clark. But when comparing it to its historical volatility, BEO Bancorp is 1.24 times less risky than Lewis Clark. It trades about 0.08 of its potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,100 in Lewis Clark Bancorp on September 2, 2024 and sell it today you would earn a total of 900.00 from holding Lewis Clark Bancorp or generate 42.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BEO Bancorp vs. Lewis Clark Bancorp
Performance |
| Timeline |
| BEO Bancorp |
| Lewis Clark Bancorp |
BEO Bancorp and Lewis Clark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEO Bancorp and Lewis Clark
The main advantage of trading using opposite BEO Bancorp and Lewis Clark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEO Bancorp position performs unexpectedly, Lewis Clark 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 Lewis Clark will offset losses from the drop in Lewis Clark's long position.| BEO Bancorp vs. Piraeus Bank SA | BEO Bancorp vs. Turkiye Garanti Bankasi | BEO Bancorp vs. Uwharrie Capital Corp |
| Lewis Clark vs. China Clean Energy | Lewis Clark vs. Titan Machinery | Lewis Clark vs. Tradeweb Markets | Lewis Clark vs. Simon Property Group |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |