Correlation Between Commerzbank and HV Bancorp
Can any of the company-specific risk be diversified away by investing in both Commerzbank and HV 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 Commerzbank and HV Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Commerzbank AG and HV Bancorp, you can compare the effects of market volatilities on Commerzbank and HV 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 Commerzbank with a short position of HV Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Commerzbank and HV Bancorp.
Diversification Opportunities for Commerzbank and HV Bancorp
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Commerzbank and HVBC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Commerzbank AG and HV Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HV Bancorp and Commerzbank 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 Commerzbank AG are associated (or correlated) with HV Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HV Bancorp has no effect on the direction of Commerzbank i.e., Commerzbank and HV Bancorp go up and down completely randomly.
Pair Corralation between Commerzbank and HV Bancorp
If you would invest 1,725 in Commerzbank AG on August 29, 2024 and sell it today you would earn a total of 75.00 from holding Commerzbank AG or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Commerzbank AG vs. HV Bancorp
Performance |
| Timeline |
| Commerzbank AG |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Commerzbank and HV Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Commerzbank and HV Bancorp
The main advantage of trading using opposite Commerzbank and HV Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Commerzbank position performs unexpectedly, HV 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 HV Bancorp will offset losses from the drop in HV Bancorp's long position.| Commerzbank vs. Israel Discount Bank | Commerzbank vs. Baraboo Bancorporation | Commerzbank vs. Danske Bank AS | Commerzbank vs. Jyske Bank AS |
| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore Bancorp |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |