Correlation Between Brookline Bancorp and HarborOne Bancorp
Can any of the company-specific risk be diversified away by investing in both Brookline Bancorp and HarborOne 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 Brookline Bancorp and HarborOne Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brookline Bancorp and HarborOne Bancorp, you can compare the effects of market volatilities on Brookline Bancorp and HarborOne 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 Brookline Bancorp with a short position of HarborOne Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brookline Bancorp and HarborOne Bancorp.
Diversification Opportunities for Brookline Bancorp and HarborOne Bancorp
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brookline and HarborOne is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Brookline Bancorp and HarborOne Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HarborOne Bancorp and Brookline 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 Brookline Bancorp are associated (or correlated) with HarborOne Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HarborOne Bancorp has no effect on the direction of Brookline Bancorp i.e., Brookline Bancorp and HarborOne Bancorp go up and down completely randomly.
Pair Corralation between Brookline Bancorp and HarborOne Bancorp
Given the investment horizon of 90 days Brookline Bancorp is expected to generate 0.93 times more return on investment than HarborOne Bancorp. However, Brookline Bancorp is 1.07 times less risky than HarborOne Bancorp. It trades about 0.07 of its potential returns per unit of risk. HarborOne Bancorp is currently generating about 0.04 per unit of risk. If you would invest 907.00 in Brookline Bancorp on September 14, 2024 and sell it today you would earn a total of 349.00 from holding Brookline Bancorp or generate 38.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brookline Bancorp vs. HarborOne Bancorp
Performance |
| Timeline |
| Brookline Bancorp |
| HarborOne Bancorp |
Brookline Bancorp and HarborOne Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brookline Bancorp and HarborOne Bancorp
The main advantage of trading using opposite Brookline Bancorp and HarborOne Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brookline Bancorp position performs unexpectedly, HarborOne 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 HarborOne Bancorp will offset losses from the drop in HarborOne Bancorp's long position.| Brookline Bancorp vs. Heritage Commerce Corp | Brookline Bancorp vs. Eastern Bankshares | Brookline Bancorp vs. HarborOne Bancorp | Brookline Bancorp vs. Kearny Financial Corp |
| HarborOne Bancorp vs. Independent Bank | HarborOne Bancorp vs. Richmond Mutual Bancorporation | HarborOne Bancorp vs. Berkshire Hills Bancorp | HarborOne Bancorp vs. Southern Missouri 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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