Correlation Between Bank of South and Home Bancorp
Can any of the company-specific risk be diversified away by investing in both Bank of South and Home 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 Home 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 Home Bancorp, you can compare the effects of market volatilities on Bank of South and Home 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 Home Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of South and Home Bancorp.
Diversification Opportunities for Bank of South and Home Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bank and Home is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bank of South and Home Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Home 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 Home Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Home Bancorp has no effect on the direction of Bank of South i.e., Bank of South and Home Bancorp go up and down completely randomly.
Pair Corralation between Bank of South and Home Bancorp
If you would invest 3,761 in Home Bancorp on November 9, 2024 and sell it today you would earn a total of 1,488 from holding Home Bancorp or generate 39.56% 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. Home Bancorp
Performance |
| Timeline |
| Bank of South |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Home Bancorp |
Bank of South and Home Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of South and Home Bancorp
The main advantage of trading using opposite Bank of South and Home Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of South position performs unexpectedly, Home 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 Home Bancorp will offset losses from the drop in Home 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 |
| Home Bancorp vs. Home Federal Bancorp | Home Bancorp vs. Community West Bancshares | Home Bancorp vs. First Financial Northwest | Home Bancorp vs. First Capital |
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.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |