Correlation Between Equity Bancshares, and Amerant Bancorp
Can any of the company-specific risk be diversified away by investing in both Equity Bancshares, and Amerant 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 Equity Bancshares, and Amerant Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equity Bancshares, and Amerant Bancorp, you can compare the effects of market volatilities on Equity Bancshares, and Amerant 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 Equity Bancshares, with a short position of Amerant Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Bancshares, and Amerant Bancorp.
Diversification Opportunities for Equity Bancshares, and Amerant Bancorp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Equity and Amerant is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Equity Bancshares, and Amerant Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amerant Bancorp and Equity Bancshares, 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 Equity Bancshares, are associated (or correlated) with Amerant Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amerant Bancorp has no effect on the direction of Equity Bancshares, i.e., Equity Bancshares, and Amerant Bancorp go up and down completely randomly.
Pair Corralation between Equity Bancshares, and Amerant Bancorp
Given the investment horizon of 90 days Equity Bancshares, is expected to generate 1.2 times less return on investment than Amerant Bancorp. But when comparing it to its historical volatility, Equity Bancshares, is 1.21 times less risky than Amerant Bancorp. It trades about 0.2 of its potential returns per unit of risk. Amerant Bancorp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,192 in Amerant Bancorp on August 29, 2024 and sell it today you would earn a total of 313.00 from holding Amerant Bancorp or generate 14.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equity Bancshares, vs. Amerant Bancorp
Performance |
| Timeline |
| Equity Bancshares, |
| Amerant Bancorp |
Equity Bancshares, and Amerant Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equity Bancshares, and Amerant Bancorp
The main advantage of trading using opposite Equity Bancshares, and Amerant Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Bancshares, position performs unexpectedly, Amerant 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 Amerant Bancorp will offset losses from the drop in Amerant Bancorp's long position.| Equity Bancshares, vs. Brookline Bancorp | Equity Bancshares, vs. Kearny Financial Corp | Equity Bancshares, vs. Heritage Financial | Equity Bancshares, vs. FVCBankcorp |
| Amerant Bancorp vs. Affinity Bancshares | Amerant Bancorp vs. Southern California Bancorp | Amerant Bancorp vs. Auburn National Bancorporation | Amerant Bancorp vs. BayCom 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |