Correlation Between 1st Capital and William Penn
Can any of the company-specific risk be diversified away by investing in both 1st Capital and William Penn 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 William Penn 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 William Penn Bancorp, you can compare the effects of market volatilities on 1st Capital and William Penn 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 William Penn. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1st Capital and William Penn.
Diversification Opportunities for 1st Capital and William Penn
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 1st and William is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 1st Capital Bank and William Penn Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on William Penn Bancorp 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 William Penn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of William Penn Bancorp has no effect on the direction of 1st Capital i.e., 1st Capital and William Penn go up and down completely randomly.
Pair Corralation between 1st Capital and William Penn
If you would invest 1,203 in William Penn Bancorp on November 9, 2024 and sell it today you would earn a total of 55.00 from holding William Penn Bancorp or generate 4.57% 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. William Penn Bancorp
Performance |
| Timeline |
| 1st Capital Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| William Penn Bancorp |
1st Capital and William Penn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1st Capital and William Penn
The main advantage of trading using opposite 1st Capital and William Penn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1st Capital position performs unexpectedly, William Penn 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 William Penn will offset losses from the drop in William Penn'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 |
| William Penn vs. Home Federal Bancorp | William Penn vs. First Financial Northwest | William Penn vs. First Northwest Bancorp | William Penn vs. First Capital |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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