Correlation Between Finward Bancorp and Ohio Valley
Can any of the company-specific risk be diversified away by investing in both Finward Bancorp and Ohio Valley 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 Ohio Valley into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finward Bancorp and Ohio Valley Banc, you can compare the effects of market volatilities on Finward Bancorp and Ohio Valley 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 Ohio Valley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finward Bancorp and Ohio Valley.
Diversification Opportunities for Finward Bancorp and Ohio Valley
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Finward and Ohio is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Finward Bancorp and Ohio Valley Banc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ohio Valley Banc 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 Ohio Valley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ohio Valley Banc has no effect on the direction of Finward Bancorp i.e., Finward Bancorp and Ohio Valley go up and down completely randomly.
Pair Corralation between Finward Bancorp and Ohio Valley
Given the investment horizon of 90 days Finward Bancorp is expected to generate 191.88 times less return on investment than Ohio Valley. But when comparing it to its historical volatility, Finward Bancorp is 22.44 times less risky than Ohio Valley. It trades about 0.0 of its potential returns per unit of risk. Ohio Valley Banc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,446 in Ohio Valley Banc on September 5, 2024 and sell it today you would earn a total of 234.00 from holding Ohio Valley Banc or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.38% |
| Values | Daily Returns |
Finward Bancorp vs. Ohio Valley Banc
Performance |
| Timeline |
| Finward Bancorp |
| Ohio Valley Banc |
Finward Bancorp and Ohio Valley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finward Bancorp and Ohio Valley
The main advantage of trading using opposite Finward Bancorp and Ohio Valley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finward Bancorp position performs unexpectedly, Ohio Valley 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 Ohio Valley will offset losses from the drop in Ohio Valley'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 |
| Ohio Valley vs. Home Federal Bancorp | Ohio Valley vs. Lake Shore Bancorp | Ohio Valley vs. Community West Bancshares | Ohio Valley vs. Magyar 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |