Correlation Between Glen Burnie and Uwharrie Capital
Can any of the company-specific risk be diversified away by investing in both Glen Burnie and Uwharrie 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 Uwharrie 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 Uwharrie Capital Corp, you can compare the effects of market volatilities on Glen Burnie and Uwharrie 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 Uwharrie Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glen Burnie and Uwharrie Capital.
Diversification Opportunities for Glen Burnie and Uwharrie Capital
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Glen and Uwharrie is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Glen Burnie Bancorp and Uwharrie Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uwharrie Capital Corp 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 Uwharrie Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uwharrie Capital Corp has no effect on the direction of Glen Burnie i.e., Glen Burnie and Uwharrie Capital go up and down completely randomly.
Pair Corralation between Glen Burnie and Uwharrie Capital
Given the investment horizon of 90 days Glen Burnie Bancorp is expected to generate 2.66 times more return on investment than Uwharrie Capital. However, Glen Burnie is 2.66 times more volatile than Uwharrie Capital Corp. It trades about 0.11 of its potential returns per unit of risk. Uwharrie Capital Corp is currently generating about 0.13 per unit of risk. If you would invest 554.00 in Glen Burnie Bancorp on August 29, 2024 and sell it today you would earn a total of 51.00 from holding Glen Burnie Bancorp or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glen Burnie Bancorp vs. Uwharrie Capital Corp
Performance |
| Timeline |
| Glen Burnie Bancorp |
| Uwharrie Capital Corp |
Glen Burnie and Uwharrie Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glen Burnie and Uwharrie Capital
The main advantage of trading using opposite Glen Burnie and Uwharrie Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glen Burnie position performs unexpectedly, Uwharrie 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 Uwharrie Capital will offset losses from the drop in Uwharrie 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 |
| Uwharrie Capital vs. ENB Financial Corp | Uwharrie Capital vs. First Reliance Bancshares | Uwharrie Capital vs. Oak Ridge Financial | Uwharrie Capital vs. Glen Burnie 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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