Correlation Between Glen Burnie and Popular Capital
Can any of the company-specific risk be diversified away by investing in both Glen Burnie and Popular Capital 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 Glen Burnie and Popular Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glen Burnie Bancorp and Popular Capital Trust, you can compare the effects of market volatilities on Glen Burnie and Popular Capital 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 Glen Burnie with a short position of Popular Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Burnie and Popular Capital.
Diversification Opportunities for Glen Burnie and Popular Capital
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Glen and Popular is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Glen Burnie Bancorp and Popular Capital Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Popular Capital Trust and Glen Burnie 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 Glen Burnie Bancorp are associated (or correlated) with Popular Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Popular Capital Trust has no effect on the direction of Glen Burnie i.e., Glen Burnie and Popular Capital go up and down completely randomly.
Pair Corralation between Glen Burnie and Popular Capital
Given the investment horizon of 90 days Glen Burnie Bancorp is expected to generate 57.59 times more return on investment than Popular Capital. However, Glen Burnie is 57.59 times more volatile than Popular Capital Trust. It trades about 0.04 of its potential returns per unit of risk. Popular Capital Trust is currently generating about 0.03 per unit of risk. If you would invest 659.00 in Glen Burnie Bancorp on January 14, 2025 and sell it today you would lose (154.00) from holding Glen Burnie Bancorp or give up 23.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.56% |
| Values | Daily Returns |
Glen Burnie Bancorp vs. Popular Capital Trust
Performance |
| Timeline |
| Glen Burnie Bancorp |
| Popular Capital Trust |
Glen Burnie and Popular Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Burnie and Popular Capital
The main advantage of trading using opposite Glen Burnie and Popular Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Burnie position performs unexpectedly, Popular Capital 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 Popular Capital will offset losses from the drop in Popular Capital's long position.| Glen Burnie vs. First Bankers Trustshares | Glen Burnie vs. Greenville Federal Financial | Glen Burnie vs. First Ottawa Bancshares | Glen Burnie vs. Coastal Carolina Bancshares |
| Popular Capital vs. BFC Capital Trust | Popular Capital vs. Popular | Popular Capital vs. Oxford Lane Capital | Popular Capital vs. Wintrust Financial Corp |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |