Correlation Between HV Bancorp and Bogota Financial
Can any of the company-specific risk be diversified away by investing in both HV Bancorp and Bogota 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 HV Bancorp and Bogota Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HV Bancorp and Bogota Financial Corp, you can compare the effects of market volatilities on HV Bancorp and Bogota 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 HV Bancorp with a short position of Bogota Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of HV Bancorp and Bogota Financial.
Diversification Opportunities for HV Bancorp and Bogota Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HVBC and Bogota is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HV Bancorp and Bogota Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bogota Financial Corp and HV Bancorp 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 HV Bancorp are associated (or correlated) with Bogota Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bogota Financial Corp has no effect on the direction of HV Bancorp i.e., HV Bancorp and Bogota Financial go up and down completely randomly.
Pair Corralation between HV Bancorp and Bogota Financial
If you would invest 710.00 in Bogota Financial Corp on January 11, 2025 and sell it today you would lose (15.00) from holding Bogota Financial Corp or give up 2.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
HV Bancorp vs. Bogota Financial Corp
Performance |
| Timeline |
| HV Bancorp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Bogota Financial Corp |
HV Bancorp and Bogota Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HV Bancorp and Bogota Financial
The main advantage of trading using opposite HV Bancorp and Bogota Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HV Bancorp position performs unexpectedly, Bogota 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 Bogota Financial will offset losses from the drop in Bogota Financial's long position.| HV Bancorp vs. Magyar Bancorp | HV Bancorp vs. Home Federal Bancorp | HV Bancorp vs. Community West Bancshares | HV Bancorp vs. Lake Shore Bancorp |
| Bogota Financial vs. Home Federal Bancorp | Bogota Financial vs. First Financial Northwest | Bogota Financial vs. First Northwest Bancorp | Bogota Financial 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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