Correlation Between CrossFirst Bankshares and Sturgis Bancorp
Can any of the company-specific risk be diversified away by investing in both CrossFirst Bankshares and Sturgis 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 CrossFirst Bankshares and Sturgis Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CrossFirst Bankshares and Sturgis Bancorp, you can compare the effects of market volatilities on CrossFirst Bankshares and Sturgis 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 CrossFirst Bankshares with a short position of Sturgis Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CrossFirst Bankshares and Sturgis Bancorp.
Diversification Opportunities for CrossFirst Bankshares and Sturgis Bancorp
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CrossFirst and Sturgis is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding CrossFirst Bankshares and Sturgis Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sturgis Bancorp and CrossFirst Bankshares 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 CrossFirst Bankshares are associated (or correlated) with Sturgis Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sturgis Bancorp has no effect on the direction of CrossFirst Bankshares i.e., CrossFirst Bankshares and Sturgis Bancorp go up and down completely randomly.
Pair Corralation between CrossFirst Bankshares and Sturgis Bancorp
If you would invest 1,287 in CrossFirst Bankshares on August 27, 2024 and sell it today you would earn a total of 509.00 from holding CrossFirst Bankshares or generate 39.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.53% |
| Values | Daily Returns |
CrossFirst Bankshares vs. Sturgis Bancorp
Performance |
| Timeline |
| CrossFirst Bankshares |
| Sturgis Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CrossFirst Bankshares and Sturgis Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CrossFirst Bankshares and Sturgis Bancorp
The main advantage of trading using opposite CrossFirst Bankshares and Sturgis Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CrossFirst Bankshares position performs unexpectedly, Sturgis 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 Sturgis Bancorp will offset losses from the drop in Sturgis Bancorp's long position.| CrossFirst Bankshares vs. Fifth Third Bancorp | CrossFirst Bankshares vs. Zions Bancorporation | CrossFirst Bankshares vs. Huntington Bancshares Incorporated | CrossFirst Bankshares vs. PNC Financial Services |
| Sturgis Bancorp vs. FS Bancorp | Sturgis Bancorp vs. Eastern Michigan Financial | Sturgis Bancorp vs. Grand River Commerce | Sturgis Bancorp vs. Bank of Botetourt |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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