Correlation Between Cornerstone Financial and Washington Federal
Can any of the company-specific risk be diversified away by investing in both Cornerstone Financial and Washington Federal 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 Cornerstone Financial and Washington Federal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cornerstone Financial and Washington Federal, you can compare the effects of market volatilities on Cornerstone Financial and Washington Federal 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 Cornerstone Financial with a short position of Washington Federal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Financial and Washington Federal.
Diversification Opportunities for Cornerstone Financial and Washington Federal
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cornerstone and Washington is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Financial and Washington Federal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Washington Federal and Cornerstone Financial 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 Cornerstone Financial are associated (or correlated) with Washington Federal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Washington Federal has no effect on the direction of Cornerstone Financial i.e., Cornerstone Financial and Washington Federal go up and down completely randomly.
Pair Corralation between Cornerstone Financial and Washington Federal
If you would invest 832.00 in Cornerstone Financial on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Cornerstone Financial or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cornerstone Financial vs. Washington Federal
Performance |
| Timeline |
| Cornerstone Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Washington Federal |
Cornerstone Financial and Washington Federal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cornerstone Financial and Washington Federal
The main advantage of trading using opposite Cornerstone Financial and Washington Federal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornerstone Financial position performs unexpectedly, Washington Federal 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 Washington Federal will offset losses from the drop in Washington Federal's long position.| Cornerstone Financial vs. Northfield Bancorp | Cornerstone Financial vs. Sierra Bancorp | Cornerstone Financial vs. Bogota Financial Corp | Cornerstone Financial vs. First Bancorp |
| Washington Federal vs. Capital One Financial | Washington Federal vs. Capital One Financial | Washington Federal vs. Bank of America |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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