Correlation Between ConnectOne Bancorp and Stamper Oil
Can any of the company-specific risk be diversified away by investing in both ConnectOne Bancorp and Stamper Oil 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 Stamper Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ConnectOne Bancorp and Stamper Oil Gas, you can compare the effects of market volatilities on ConnectOne Bancorp and Stamper Oil 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 Stamper Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of ConnectOne Bancorp and Stamper Oil.
Diversification Opportunities for ConnectOne Bancorp and Stamper Oil
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ConnectOne and Stamper is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ConnectOne Bancorp and Stamper Oil Gas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stamper Oil Gas 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 Stamper Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stamper Oil Gas has no effect on the direction of ConnectOne Bancorp i.e., ConnectOne Bancorp and Stamper Oil go up and down completely randomly.
Pair Corralation between ConnectOne Bancorp and Stamper Oil
Assuming the 90 days horizon ConnectOne Bancorp is expected to generate 0.43 times more return on investment than Stamper Oil. However, ConnectOne Bancorp is 2.3 times less risky than Stamper Oil. It trades about 0.07 of its potential returns per unit of risk. Stamper Oil Gas is currently generating about -0.22 per unit of risk. If you would invest 2,223 in ConnectOne Bancorp on October 14, 2024 and sell it today you would earn a total of 27.00 from holding ConnectOne Bancorp or generate 1.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
ConnectOne Bancorp vs. Stamper Oil Gas
Performance |
| Timeline |
| ConnectOne Bancorp |
| Stamper Oil Gas |
ConnectOne Bancorp and Stamper Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ConnectOne Bancorp and Stamper Oil
The main advantage of trading using opposite ConnectOne Bancorp and Stamper Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ConnectOne Bancorp position performs unexpectedly, Stamper Oil 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 Stamper Oil will offset losses from the drop in Stamper Oil'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 |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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