Correlation Between Bank of San Francisco and Parkway Acquisition
Can any of the company-specific risk be diversified away by investing in both Bank of San Francisco and Parkway Acquisition 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 San Francisco and Parkway Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of San and Parkway Acquisition Corp, you can compare the effects of market volatilities on Bank of San Francisco and Parkway Acquisition 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 San Francisco with a short position of Parkway Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of San Francisco and Parkway Acquisition.
Diversification Opportunities for Bank of San Francisco and Parkway Acquisition
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and Parkway is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Bank of San and Parkway Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkway Acquisition Corp and Bank of San Francisco 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 San are associated (or correlated) with Parkway Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkway Acquisition Corp has no effect on the direction of Bank of San Francisco i.e., Bank of San Francisco and Parkway Acquisition go up and down completely randomly.
Pair Corralation between Bank of San Francisco and Parkway Acquisition
If you would invest 2,800 in Bank of San on September 1, 2024 and sell it today you would earn a total of 215.00 from holding Bank of San or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Bank of San vs. Parkway Acquisition Corp
Performance |
| Timeline |
| Bank of San Francisco |
| Parkway Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bank of San Francisco and Parkway Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of San Francisco and Parkway Acquisition
The main advantage of trading using opposite Bank of San Francisco and Parkway Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of San Francisco position performs unexpectedly, Parkway Acquisition 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 Parkway Acquisition will offset losses from the drop in Parkway Acquisition's long position.| Bank of San Francisco vs. Pioneer Bankcorp | Bank of San Francisco vs. Liberty Northwest Bancorp | Bank of San Francisco vs. Summit Bancshares | Bank of San Francisco vs. Washington Business Bank |
| Parkway Acquisition vs. First Bankers Trustshares | Parkway Acquisition vs. Greenville Federal Financial | Parkway Acquisition vs. First Ottawa Bancshares | Parkway Acquisition vs. Coastal Carolina Bancshares |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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