Correlation Between Exchange Bankshares and Univest Pennsylvania
Can any of the company-specific risk be diversified away by investing in both Exchange Bankshares and Univest Pennsylvania 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 Exchange Bankshares and Univest Pennsylvania into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exchange Bankshares and Univest Pennsylvania, you can compare the effects of market volatilities on Exchange Bankshares and Univest Pennsylvania 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 Exchange Bankshares with a short position of Univest Pennsylvania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exchange Bankshares and Univest Pennsylvania.
Diversification Opportunities for Exchange Bankshares and Univest Pennsylvania
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Exchange and Univest is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Exchange Bankshares and Univest Pennsylvania in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univest Pennsylvania and Exchange Bankshares 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 Exchange Bankshares are associated (or correlated) with Univest Pennsylvania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univest Pennsylvania has no effect on the direction of Exchange Bankshares i.e., Exchange Bankshares and Univest Pennsylvania go up and down completely randomly.
Pair Corralation between Exchange Bankshares and Univest Pennsylvania
Given the investment horizon of 90 days Exchange Bankshares is expected to generate 0.76 times more return on investment than Univest Pennsylvania. However, Exchange Bankshares is 1.31 times less risky than Univest Pennsylvania. It trades about 0.3 of its potential returns per unit of risk. Univest Pennsylvania is currently generating about -0.3 per unit of risk. If you would invest 4,501 in Exchange Bankshares on October 9, 2024 and sell it today you would earn a total of 289.00 from holding Exchange Bankshares or generate 6.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exchange Bankshares vs. Univest Pennsylvania
Performance |
| Timeline |
| Exchange Bankshares |
| Univest Pennsylvania |
Exchange Bankshares and Univest Pennsylvania Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exchange Bankshares and Univest Pennsylvania
The main advantage of trading using opposite Exchange Bankshares and Univest Pennsylvania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exchange Bankshares position performs unexpectedly, Univest Pennsylvania 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 Univest Pennsylvania will offset losses from the drop in Univest Pennsylvania's long position.| Exchange Bankshares vs. First Community Financial | Exchange Bankshares vs. National Capital Bank | Exchange Bankshares vs. Oakworth Capital | Exchange Bankshares vs. Truxton |
| Univest Pennsylvania vs. Waterstone Financial | Univest Pennsylvania vs. Mid Penn Bancorp | Univest Pennsylvania vs. ST Bancorp | Univest Pennsylvania vs. Republic 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |