Correlation Between ConnectOne Bancorp and CrossFirst Bankshares
Can any of the company-specific risk be diversified away by investing in both ConnectOne Bancorp and CrossFirst Bankshares 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 ConnectOne Bancorp and CrossFirst Bankshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConnectOne Bancorp and CrossFirst Bankshares, you can compare the effects of market volatilities on ConnectOne Bancorp and CrossFirst Bankshares 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 ConnectOne Bancorp with a short position of CrossFirst Bankshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConnectOne Bancorp and CrossFirst Bankshares.
Diversification Opportunities for ConnectOne Bancorp and CrossFirst Bankshares
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ConnectOne and CrossFirst is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding ConnectOne Bancorp and CrossFirst Bankshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CrossFirst Bankshares and ConnectOne 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 ConnectOne Bancorp are associated (or correlated) with CrossFirst Bankshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CrossFirst Bankshares has no effect on the direction of ConnectOne Bancorp i.e., ConnectOne Bancorp and CrossFirst Bankshares go up and down completely randomly.
Pair Corralation between ConnectOne Bancorp and CrossFirst Bankshares
Given the investment horizon of 90 days ConnectOne Bancorp is expected to generate 1.13 times more return on investment than CrossFirst Bankshares. However, ConnectOne Bancorp is 1.13 times more volatile than CrossFirst Bankshares. It trades about 0.16 of its potential returns per unit of risk. CrossFirst Bankshares is currently generating about 0.14 per unit of risk. If you would invest 2,440 in ConnectOne Bancorp on August 30, 2024 and sell it today you would earn a total of 335.00 from holding ConnectOne Bancorp or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ConnectOne Bancorp vs. CrossFirst Bankshares
Performance |
| Timeline |
| ConnectOne Bancorp |
| CrossFirst Bankshares |
ConnectOne Bancorp and CrossFirst Bankshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConnectOne Bancorp and CrossFirst Bankshares
The main advantage of trading using opposite ConnectOne Bancorp and CrossFirst Bankshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConnectOne Bancorp position performs unexpectedly, CrossFirst Bankshares 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 CrossFirst Bankshares will offset losses from the drop in CrossFirst Bankshares' long position.| ConnectOne Bancorp vs. SVB T Corp | ConnectOne Bancorp vs. First Capital | ConnectOne Bancorp vs. Pioneer Bankcorp | ConnectOne Bancorp vs. Liberty Northwest Bancorp |
| CrossFirst Bankshares vs. Home Bancorp | CrossFirst Bankshares vs. Great Southern Bancorp | CrossFirst Bankshares vs. Finward Bancorp | CrossFirst Bankshares vs. Community West 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |