Correlation Between Bank of South and Finward Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank of South and Finward 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 Bank of South and Finward Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of South and Finward Bancorp, you can compare the effects of market volatilities on Bank of South and Finward 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 Bank of South with a short position of Finward Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of South and Finward Bancorp.
Diversification Opportunities for Bank of South and Finward Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Finward is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of South and Finward Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finward Bancorp and Bank of South 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 Bank of South are associated (or correlated) with Finward Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finward Bancorp has no effect on the direction of Bank of South i.e., Bank of South and Finward Bancorp go up and down completely randomly.
Pair Corralation between Bank of South and Finward Bancorp
If you would invest (100.00) in Bank of South on November 9, 2024 and sell it today you would earn a total of 100.00 from holding Bank of South or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Bank of South vs. Finward Bancorp
Performance |
| Timeline |
| Bank of South |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Finward Bancorp |
Bank of South and Finward Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of South and Finward Bancorp
The main advantage of trading using opposite Bank of South and Finward Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of South position performs unexpectedly, Finward 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 Finward Bancorp will offset losses from the drop in Finward Bancorp's long position.| Bank of South vs. Auburn National Bancorporation | Bank of South vs. Bank of Marin | Bank of South vs. Ames National | Bank of South vs. CF Financial |
| Finward Bancorp vs. Community West Bancshares | Finward Bancorp vs. First Financial Northwest | Finward Bancorp vs. Oak Valley Bancorp | Finward Bancorp vs. Home Federal 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |