Correlation Between Finward Bancorp and 70082LAB3
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By analyzing existing cross correlation between Finward Bancorp and US70082LAB36, you can compare the effects of market volatilities on Finward Bancorp and 70082LAB3 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 70082LAB3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finward Bancorp and 70082LAB3.
Diversification Opportunities for Finward Bancorp and 70082LAB3
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Finward and 70082LAB3 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Finward Bancorp and US70082LAB36 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US70082LAB36 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 70082LAB3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US70082LAB36 has no effect on the direction of Finward Bancorp i.e., Finward Bancorp and 70082LAB3 go up and down completely randomly.
Pair Corralation between Finward Bancorp and 70082LAB3
Given the investment horizon of 90 days Finward Bancorp is expected to generate 0.7 times more return on investment than 70082LAB3. However, Finward Bancorp is 1.44 times less risky than 70082LAB3. It trades about 0.12 of its potential returns per unit of risk. US70082LAB36 is currently generating about 0.04 per unit of risk. If you would invest 2,133 in Finward Bancorp on September 4, 2024 and sell it today you would earn a total of 969.00 from holding Finward Bancorp or generate 45.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 51.01% |
| Values | Daily Returns |
Finward Bancorp vs. US70082LAB36
Performance |
| Timeline |
| Finward Bancorp |
| US70082LAB36 |
Finward Bancorp and 70082LAB3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finward Bancorp and 70082LAB3
The main advantage of trading using opposite Finward Bancorp and 70082LAB3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finward Bancorp position performs unexpectedly, 70082LAB3 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 70082LAB3 will offset losses from the drop in 70082LAB3'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 |
| 70082LAB3 vs. AEP TEX INC | 70082LAB3 vs. US BANK NATIONAL | 70082LAB3 vs. Jackson Financial | 70082LAB3 vs. MetLife |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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