Correlation Between Farmers Bancorp and Aozora Bank
Can any of the company-specific risk be diversified away by investing in both Farmers Bancorp and Aozora Bank 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 Farmers Bancorp and Aozora Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmers Bancorp and Aozora Bank, you can compare the effects of market volatilities on Farmers Bancorp and Aozora Bank 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 Farmers Bancorp with a short position of Aozora Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmers Bancorp and Aozora Bank.
Diversification Opportunities for Farmers Bancorp and Aozora Bank
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Farmers and Aozora is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Farmers Bancorp and Aozora Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aozora Bank and Farmers Bancorp 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 Farmers Bancorp are associated (or correlated) with Aozora Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aozora Bank has no effect on the direction of Farmers Bancorp i.e., Farmers Bancorp and Aozora Bank go up and down completely randomly.
Pair Corralation between Farmers Bancorp and Aozora Bank
If you would invest 3,300 in Farmers Bancorp on September 2, 2024 and sell it today you would earn a total of 250.00 from holding Farmers Bancorp or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Farmers Bancorp vs. Aozora Bank
Performance |
| Timeline |
| Farmers Bancorp |
| Aozora Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Farmers Bancorp and Aozora Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmers Bancorp and Aozora Bank
The main advantage of trading using opposite Farmers Bancorp and Aozora Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmers Bancorp position performs unexpectedly, Aozora Bank 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 Aozora Bank will offset losses from the drop in Aozora Bank's long position.| Farmers Bancorp vs. First Farmers Financial | Farmers Bancorp vs. Farmers Merchants Bancorp | Farmers Bancorp vs. Lakeland Financial | Farmers Bancorp vs. Eagle Financial Services |
| Aozora Bank vs. Ryman Hospitality Properties | Aozora Bank vs. Starbucks | Aozora Bank vs. Verra Mobility Corp | Aozora Bank vs. The Cheesecake Factory |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |