Correlation Between Colony Bankcorp and LINKBANCORP
Can any of the company-specific risk be diversified away by investing in both Colony Bankcorp and LINKBANCORP 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 Colony Bankcorp and LINKBANCORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Colony Bankcorp and LINKBANCORP, you can compare the effects of market volatilities on Colony Bankcorp and LINKBANCORP 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 Colony Bankcorp with a short position of LINKBANCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Colony Bankcorp and LINKBANCORP.
Diversification Opportunities for Colony Bankcorp and LINKBANCORP
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Colony and LINKBANCORP is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Colony Bankcorp and LINKBANCORP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINKBANCORP and Colony Bankcorp 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 Colony Bankcorp are associated (or correlated) with LINKBANCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINKBANCORP has no effect on the direction of Colony Bankcorp i.e., Colony Bankcorp and LINKBANCORP go up and down completely randomly.
Pair Corralation between Colony Bankcorp and LINKBANCORP
Given the investment horizon of 90 days Colony Bankcorp is expected to generate 1.02 times less return on investment than LINKBANCORP. In addition to that, Colony Bankcorp is 1.05 times more volatile than LINKBANCORP. It trades about 0.16 of its total potential returns per unit of risk. LINKBANCORP is currently generating about 0.17 per unit of volatility. If you would invest 641.00 in LINKBANCORP on August 29, 2024 and sell it today you would earn a total of 106.00 from holding LINKBANCORP or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Colony Bankcorp vs. LINKBANCORP
Performance |
| Timeline |
| Colony Bankcorp |
| LINKBANCORP |
Colony Bankcorp and LINKBANCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Colony Bankcorp and LINKBANCORP
The main advantage of trading using opposite Colony Bankcorp and LINKBANCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Colony Bankcorp position performs unexpectedly, LINKBANCORP 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 LINKBANCORP will offset losses from the drop in LINKBANCORP's long position.| Colony Bankcorp vs. Home Federal Bancorp | Colony Bankcorp vs. First Financial Northwest | Colony Bankcorp vs. First Northwest Bancorp | Colony Bankcorp vs. First Capital |
| LINKBANCORP vs. Home Federal Bancorp | LINKBANCORP vs. Lake Shore Bancorp | LINKBANCORP vs. Community West Bancshares | LINKBANCORP vs. Magyar 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |