Correlation Between Community Bankers and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both Community Bankers and Apollo 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 Community Bankers and Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Community Bankers and Apollo Bancorp, you can compare the effects of market volatilities on Community Bankers and Apollo 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 Community Bankers with a short position of Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Community Bankers and Apollo Bancorp.
Diversification Opportunities for Community Bankers and Apollo Bancorp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Community and Apollo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Community Bankers and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp and Community Bankers 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 Community Bankers are associated (or correlated) with Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Community Bankers i.e., Community Bankers and Apollo Bancorp go up and down completely randomly.
Pair Corralation between Community Bankers and Apollo Bancorp
Given the investment horizon of 90 days Community Bankers is expected to under-perform the Apollo Bancorp. In addition to that, Community Bankers is 2.33 times more volatile than Apollo Bancorp. It trades about -0.03 of its total potential returns per unit of risk. Apollo Bancorp is currently generating about 0.01 per unit of volatility. If you would invest 3,644 in Apollo Bancorp on August 25, 2024 and sell it today you would earn a total of 6.00 from holding Apollo Bancorp or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Community Bankers vs. Apollo Bancorp
Performance |
| Timeline |
| Community Bankers |
| Apollo Bancorp |
Community Bankers and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Community Bankers and Apollo Bancorp
The main advantage of trading using opposite Community Bankers and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Community Bankers position performs unexpectedly, Apollo 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp's long position.| Community Bankers vs. The Farmers Bank | Community Bankers vs. CCSB Financial Corp | Community Bankers vs. Bank of Utica | Community Bankers vs. Delhi Bank Corp |
| Apollo Bancorp vs. The Farmers Bank | Apollo Bancorp vs. Bank of Utica | Apollo Bancorp vs. Delhi Bank Corp | Apollo Bancorp vs. CCSB Financial Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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