Correlation Between HCB Financial and High Country
Can any of the company-specific risk be diversified away by investing in both HCB Financial and High Country 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 HCB Financial and High Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCB Financial Corp and High Country Bancorp, you can compare the effects of market volatilities on HCB Financial and High Country 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 HCB Financial with a short position of High Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCB Financial and High Country.
Diversification Opportunities for HCB Financial and High Country
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HCB and High is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding HCB Financial Corp and High Country Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Country Bancorp and HCB Financial 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 HCB Financial Corp are associated (or correlated) with High Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Country Bancorp has no effect on the direction of HCB Financial i.e., HCB Financial and High Country go up and down completely randomly.
Pair Corralation between HCB Financial and High Country
If you would invest 2,281 in HCB Financial Corp on September 3, 2024 and sell it today you would earn a total of 719.00 from holding HCB Financial Corp or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.6% |
| Values | Daily Returns |
HCB Financial Corp vs. High Country Bancorp
Performance |
| Timeline |
| HCB Financial Corp |
| High Country Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HCB Financial and High Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCB Financial and High Country
The main advantage of trading using opposite HCB Financial and High Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCB Financial position performs unexpectedly, High Country 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 High Country will offset losses from the drop in High Country's long position.| HCB Financial vs. Huntington Bancshares Incorporated | HCB Financial vs. KeyCorp | HCB Financial vs. PNC Financial Services | HCB Financial vs. Regions Financial |
| High Country vs. Kentucky First Federal | High Country vs. Farmers And Merchants | High Country vs. First Keystone Corp | High Country vs. Citizens Financial Services |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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