Correlation Between Home Federal and California BanCorp
Can any of the company-specific risk be diversified away by investing in both Home Federal and California BanCorp 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 Home Federal and California BanCorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Federal Bancorp and California BanCorp, you can compare the effects of market volatilities on Home Federal and California BanCorp 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 Home Federal with a short position of California BanCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Federal and California BanCorp.
Diversification Opportunities for Home Federal and California BanCorp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Home and California is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Home Federal Bancorp and California BanCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on California BanCorp and Home Federal 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 Home Federal Bancorp are associated (or correlated) with California BanCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of California BanCorp has no effect on the direction of Home Federal i.e., Home Federal and California BanCorp go up and down completely randomly.
Pair Corralation between Home Federal and California BanCorp
If you would invest 1,216 in Home Federal Bancorp on September 2, 2024 and sell it today you would earn a total of 20.00 from holding Home Federal Bancorp or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Home Federal Bancorp vs. California BanCorp
Performance |
| Timeline |
| Home Federal Bancorp |
| California BanCorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Home Federal and California BanCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Federal and California BanCorp
The main advantage of trading using opposite Home Federal and California BanCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Federal position performs unexpectedly, California BanCorp 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 California BanCorp will offset losses from the drop in California BanCorp's long position.| Home Federal vs. Affinity Bancshares | Home Federal vs. Auburn National Bancorporation | Home Federal vs. First Community | Home Federal vs. LINKBANCORP |
| California BanCorp vs. Home Federal Bancorp | California BanCorp vs. First Financial Northwest | California BanCorp vs. First Northwest Bancorp | California BanCorp vs. First Capital |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |