Correlation Between ConnectOne Bancorp and Lake Shore
Can any of the company-specific risk be diversified away by investing in both ConnectOne Bancorp and Lake Shore 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 Lake Shore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConnectOne Bancorp and Lake Shore Bancorp, you can compare the effects of market volatilities on ConnectOne Bancorp and Lake Shore 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 Lake Shore. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConnectOne Bancorp and Lake Shore.
Diversification Opportunities for ConnectOne Bancorp and Lake Shore
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ConnectOne and Lake is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ConnectOne Bancorp and Lake Shore Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lake Shore Bancorp 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 Lake Shore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lake Shore Bancorp has no effect on the direction of ConnectOne Bancorp i.e., ConnectOne Bancorp and Lake Shore go up and down completely randomly.
Pair Corralation between ConnectOne Bancorp and Lake Shore
Assuming the 90 days horizon ConnectOne Bancorp is expected to generate 0.65 times more return on investment than Lake Shore. However, ConnectOne Bancorp is 1.53 times less risky than Lake Shore. It trades about 0.28 of its potential returns per unit of risk. Lake Shore Bancorp is currently generating about 0.04 per unit of risk. If you would invest 2,083 in ConnectOne Bancorp on August 27, 2024 and sell it today you would earn a total of 133.00 from holding ConnectOne Bancorp or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
ConnectOne Bancorp vs. Lake Shore Bancorp
Performance |
| Timeline |
| ConnectOne Bancorp |
| Lake Shore Bancorp |
ConnectOne Bancorp and Lake Shore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConnectOne Bancorp and Lake Shore
The main advantage of trading using opposite ConnectOne Bancorp and Lake Shore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConnectOne Bancorp position performs unexpectedly, Lake Shore 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 Lake Shore will offset losses from the drop in Lake Shore's long position.| ConnectOne Bancorp vs. Dime Community Bancshares | ConnectOne Bancorp vs. Washington Federal | ConnectOne Bancorp vs. CNB Financial | ConnectOne Bancorp vs. First Guaranty Bancshares |
| Lake Shore vs. Home Federal Bancorp | Lake Shore vs. Magyar Bancorp | Lake Shore 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |