Correlation Between Finward Bancorp and Mid Southern
Can any of the company-specific risk be diversified away by investing in both Finward Bancorp and Mid Southern 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 Finward Bancorp and Mid Southern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finward Bancorp and Mid Southern Bancorp, you can compare the effects of market volatilities on Finward Bancorp and Mid Southern 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 Finward Bancorp with a short position of Mid Southern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finward Bancorp and Mid Southern.
Diversification Opportunities for Finward Bancorp and Mid Southern
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Finward and Mid is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Finward Bancorp and Mid Southern Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mid Southern Bancorp and Finward 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 Finward Bancorp are associated (or correlated) with Mid Southern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mid Southern Bancorp has no effect on the direction of Finward Bancorp i.e., Finward Bancorp and Mid Southern go up and down completely randomly.
Pair Corralation between Finward Bancorp and Mid Southern
If you would invest 2,409 in Finward Bancorp on October 13, 2024 and sell it today you would earn a total of 336.00 from holding Finward Bancorp or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.7% |
| Values | Daily Returns |
Finward Bancorp vs. Mid Southern Bancorp
Performance |
| Timeline |
| Finward Bancorp |
| Mid Southern Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Finward Bancorp and Mid Southern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finward Bancorp and Mid Southern
The main advantage of trading using opposite Finward Bancorp and Mid Southern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finward Bancorp position performs unexpectedly, Mid Southern 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 Mid Southern will offset losses from the drop in Mid Southern's long position.| Finward Bancorp vs. Community West Bancshares | Finward Bancorp vs. First Financial Northwest | Finward Bancorp vs. Oak Valley Bancorp | Finward Bancorp vs. Home Federal Bancorp |
| Mid Southern vs. Community West Bancshares | Mid Southern vs. First Financial Northwest | Mid Southern vs. CF Bankshares | Mid Southern vs. Home Federal 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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