Correlation Between 1st Capital and American Riviera
Can any of the company-specific risk be diversified away by investing in both 1st Capital and American Riviera 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 1st Capital and American Riviera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1st Capital Bank and American Riviera Bank, you can compare the effects of market volatilities on 1st Capital and American Riviera 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 1st Capital with a short position of American Riviera. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1st Capital and American Riviera.
Diversification Opportunities for 1st Capital and American Riviera
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 1st and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 1st Capital Bank and American Riviera Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Riviera Bank and 1st Capital 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 1st Capital Bank are associated (or correlated) with American Riviera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Riviera Bank has no effect on the direction of 1st Capital i.e., 1st Capital and American Riviera go up and down completely randomly.
Pair Corralation between 1st Capital and American Riviera
If you would invest 1,699 in American Riviera Bank on November 9, 2024 and sell it today you would earn a total of 234.00 from holding American Riviera Bank or generate 13.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
1st Capital Bank vs. American Riviera Bank
Performance |
| Timeline |
| 1st Capital Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| American Riviera Bank |
1st Capital and American Riviera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1st Capital and American Riviera
The main advantage of trading using opposite 1st Capital and American Riviera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1st Capital position performs unexpectedly, American Riviera 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 American Riviera will offset losses from the drop in American Riviera's long position.| 1st Capital vs. Pacific Valley Bank | 1st Capital vs. Pinnacle Bank | 1st Capital vs. Santa Cruz County | 1st Capital vs. First Northern Community |
| American Riviera vs. Century Next Financial | American Riviera vs. Southern California Bancorp | American Riviera vs. American Business Bk | American Riviera vs. Avidbank Holdings |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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