Correlation Between Blackhawk Bancorp and BEO Bancorp
Can any of the company-specific risk be diversified away by investing in both Blackhawk Bancorp and BEO 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 Blackhawk Bancorp and BEO Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackhawk Bancorp and BEO Bancorp, you can compare the effects of market volatilities on Blackhawk Bancorp and BEO 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 Blackhawk Bancorp with a short position of BEO Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackhawk Bancorp and BEO Bancorp.
Diversification Opportunities for Blackhawk Bancorp and BEO Bancorp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Blackhawk and BEO is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Blackhawk Bancorp and BEO Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BEO Bancorp 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 BEO Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BEO Bancorp has no effect on the direction of Blackhawk Bancorp i.e., Blackhawk Bancorp and BEO Bancorp go up and down completely randomly.
Pair Corralation between Blackhawk Bancorp and BEO Bancorp
If you would invest 4,989 in BEO Bancorp on August 29, 2024 and sell it today you would earn a total of 2,661 from holding BEO Bancorp or generate 53.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Blackhawk Bancorp vs. BEO Bancorp
Performance |
| Timeline |
| Blackhawk Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| BEO Bancorp |
Blackhawk Bancorp and BEO Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackhawk Bancorp and BEO Bancorp
The main advantage of trading using opposite Blackhawk Bancorp and BEO Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackhawk Bancorp position performs unexpectedly, BEO 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 BEO Bancorp will offset losses from the drop in BEO Bancorp's 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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