Correlation Between HV Bancorp and Lakeland Bancorp
Can any of the company-specific risk be diversified away by investing in both HV Bancorp and Lakeland 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 HV Bancorp and Lakeland Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HV Bancorp and Lakeland Bancorp, you can compare the effects of market volatilities on HV Bancorp and Lakeland 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 HV Bancorp with a short position of Lakeland Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of HV Bancorp and Lakeland Bancorp.
Diversification Opportunities for HV Bancorp and Lakeland Bancorp
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HVBC and Lakeland is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding HV Bancorp and Lakeland Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Bancorp 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 Lakeland Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Bancorp has no effect on the direction of HV Bancorp i.e., HV Bancorp and Lakeland Bancorp go up and down completely randomly.
Pair Corralation between HV Bancorp and Lakeland Bancorp
Given the investment horizon of 90 days HV Bancorp is expected to generate 0.9 times more return on investment than Lakeland Bancorp. However, HV Bancorp is 1.11 times less risky than Lakeland Bancorp. It trades about 0.11 of its potential returns per unit of risk. Lakeland Bancorp is currently generating about -0.03 per unit of risk. If you would invest 2,650 in HV Bancorp on August 25, 2024 and sell it today you would earn a total of 810.00 from holding HV Bancorp or generate 30.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.91% |
| Values | Daily Returns |
HV Bancorp vs. Lakeland Bancorp
Performance |
| Timeline |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lakeland Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
HV Bancorp and Lakeland Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HV Bancorp and Lakeland Bancorp
The main advantage of trading using opposite HV Bancorp and Lakeland Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HV Bancorp position performs unexpectedly, Lakeland 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 Lakeland Bancorp will offset losses from the drop in Lakeland Bancorp'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 |
| Lakeland Bancorp vs. Peoples Bancorp | Lakeland Bancorp vs. Primis Financial Corp | Lakeland Bancorp vs. ConnectOne Bancorp | Lakeland Bancorp vs. LINKBANCORP |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |