Correlation Between 1ST SUMMIT and Oregon Pacific
Can any of the company-specific risk be diversified away by investing in both 1ST SUMMIT and Oregon Pacific 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 SUMMIT and Oregon Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 1ST SUMMIT BANCORP and Oregon Pacific Bancorp, you can compare the effects of market volatilities on 1ST SUMMIT and Oregon Pacific 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 SUMMIT with a short position of Oregon Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of 1ST SUMMIT and Oregon Pacific.
Diversification Opportunities for 1ST SUMMIT and Oregon Pacific
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 1ST and Oregon is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding 1ST SUMMIT BANCORP and Oregon Pacific Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oregon Pacific Bancorp and 1ST SUMMIT 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 SUMMIT BANCORP are associated (or correlated) with Oregon Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oregon Pacific Bancorp has no effect on the direction of 1ST SUMMIT i.e., 1ST SUMMIT and Oregon Pacific go up and down completely randomly.
Pair Corralation between 1ST SUMMIT and Oregon Pacific
Given the investment horizon of 90 days 1ST SUMMIT BANCORP is expected to under-perform the Oregon Pacific. In addition to that, 1ST SUMMIT is 1.23 times more volatile than Oregon Pacific Bancorp. It trades about -0.32 of its total potential returns per unit of risk. Oregon Pacific Bancorp is currently generating about 0.23 per unit of volatility. If you would invest 800.00 in Oregon Pacific Bancorp on December 1, 2024 and sell it today you would earn a total of 32.00 from holding Oregon Pacific Bancorp or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
1ST SUMMIT BANCORP vs. Oregon Pacific Bancorp
Performance |
| Timeline |
| 1ST SUMMIT BANCORP |
| Oregon Pacific Bancorp |
1ST SUMMIT and Oregon Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 1ST SUMMIT and Oregon Pacific
The main advantage of trading using opposite 1ST SUMMIT and Oregon Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 1ST SUMMIT position performs unexpectedly, Oregon Pacific 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 Oregon Pacific will offset losses from the drop in Oregon Pacific's long position.| 1ST SUMMIT vs. Apollo Bancorp | 1ST SUMMIT vs. Oregon Pacific Bancorp | 1ST SUMMIT vs. The Farmers Bank | 1ST SUMMIT vs. Community Bankers |
| Oregon Pacific vs. 1ST SUMMIT BANCORP | Oregon Pacific vs. Apollo Bancorp | Oregon Pacific vs. The Farmers Bank | Oregon Pacific vs. Old National 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.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |