Correlation Between Equity Bancshares, and Arrow Financial
Can any of the company-specific risk be diversified away by investing in both Equity Bancshares, and Arrow Financial 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 Arrow Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Equity Bancshares, and Arrow Financial, you can compare the effects of market volatilities on Equity Bancshares, and Arrow Financial 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 Arrow Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Equity Bancshares, and Arrow Financial.
Diversification Opportunities for Equity Bancshares, and Arrow Financial
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Equity and Arrow is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Equity Bancshares, and Arrow Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Financial 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 Arrow Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Financial has no effect on the direction of Equity Bancshares, i.e., Equity Bancshares, and Arrow Financial go up and down completely randomly.
Pair Corralation between Equity Bancshares, and Arrow Financial
Given the investment horizon of 90 days Equity Bancshares, is expected to generate 0.93 times more return on investment than Arrow Financial. However, Equity Bancshares, is 1.08 times less risky than Arrow Financial. It trades about 0.14 of its potential returns per unit of risk. Arrow Financial is currently generating about 0.07 per unit of risk. If you would invest 2,487 in Equity Bancshares, on August 26, 2024 and sell it today you would earn a total of 2,421 from holding Equity Bancshares, or generate 97.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Equity Bancshares, vs. Arrow Financial
Performance |
| Timeline |
| Equity Bancshares, |
| Arrow Financial |
Equity Bancshares, and Arrow Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Equity Bancshares, and Arrow Financial
The main advantage of trading using opposite Equity Bancshares, and Arrow Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Equity Bancshares, position performs unexpectedly, Arrow Financial 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 Arrow Financial will offset losses from the drop in Arrow Financial's long position.| Equity Bancshares, vs. Fifth Third Bancorp | Equity Bancshares, vs. Zions Bancorporation | Equity Bancshares, vs. Huntington Bancshares Incorporated | Equity Bancshares, vs. PNC Financial Services |
| Arrow Financial vs. Heritage Commerce Corp | Arrow Financial vs. Westamerica Bancorporation | Arrow Financial vs. Heritage Financial | Arrow Financial vs. National Bankshares |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |