Correlation Between Blackhawk Bancorp and Avidbank Holdings
Can any of the company-specific risk be diversified away by investing in both Blackhawk Bancorp and Avidbank Holdings 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 Blackhawk Bancorp and Avidbank Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackhawk Bancorp and Avidbank Holdings, you can compare the effects of market volatilities on Blackhawk Bancorp and Avidbank Holdings 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 Blackhawk Bancorp with a short position of Avidbank Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackhawk Bancorp and Avidbank Holdings.
Diversification Opportunities for Blackhawk Bancorp and Avidbank Holdings
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Blackhawk and Avidbank is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Blackhawk Bancorp and Avidbank Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avidbank Holdings and Blackhawk 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 Blackhawk Bancorp are associated (or correlated) with Avidbank Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avidbank Holdings has no effect on the direction of Blackhawk Bancorp i.e., Blackhawk Bancorp and Avidbank Holdings go up and down completely randomly.
Pair Corralation between Blackhawk Bancorp and Avidbank Holdings
If you would invest 1,950 in Avidbank Holdings on August 29, 2024 and sell it today you would earn a total of 255.00 from holding Avidbank Holdings or generate 13.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Blackhawk Bancorp vs. Avidbank Holdings
Performance |
| Timeline |
| Blackhawk Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Avidbank Holdings |
Blackhawk Bancorp and Avidbank Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackhawk Bancorp and Avidbank Holdings
The main advantage of trading using opposite Blackhawk Bancorp and Avidbank Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackhawk Bancorp position performs unexpectedly, Avidbank Holdings 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 Avidbank Holdings will offset losses from the drop in Avidbank Holdings' long position.| Blackhawk Bancorp vs. CCSB Financial Corp | Blackhawk Bancorp vs. Bank of Utica | Blackhawk Bancorp vs. First Community Financial | Blackhawk Bancorp vs. BEO Bancorp |
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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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