Correlation Between Heartland Financial and Community Financial
Can any of the company-specific risk be diversified away by investing in both Heartland Financial and Community Financial 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 Heartland Financial and Community Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heartland Financial USA and Community Financial Corp, you can compare the effects of market volatilities on Heartland Financial and Community Financial 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 Heartland Financial with a short position of Community Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heartland Financial and Community Financial.
Diversification Opportunities for Heartland Financial and Community Financial
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Heartland and Community is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Heartland Financial USA and Community Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Community Financial Corp and Heartland 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 Heartland Financial USA are associated (or correlated) with Community Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Community Financial Corp has no effect on the direction of Heartland Financial i.e., Heartland Financial and Community Financial go up and down completely randomly.
Pair Corralation between Heartland Financial and Community Financial
If you would invest 6,105 in Heartland Financial USA on October 20, 2024 and sell it today you would earn a total of 473.00 from holding Heartland Financial USA or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Heartland Financial USA vs. Community Financial Corp
Performance |
| Timeline |
| Heartland Financial USA |
| Community Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Heartland Financial and Community Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heartland Financial and Community Financial
The main advantage of trading using opposite Heartland Financial and Community Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartland Financial position performs unexpectedly, Community Financial 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 Community Financial will offset losses from the drop in Community Financial's long position.| Heartland Financial vs. Heritage Commerce Corp | Heartland Financial vs. Business First Bancshares | Heartland Financial vs. German American Bancorp | Heartland Financial vs. Texas Capital Bancshares |
| Community Financial vs. Southern Missouri Bancorp | Community Financial vs. Western New England | Community Financial vs. First Community | Community Financial vs. SB Financial Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Stocks Directory Find actively traded stocks across global markets |