Correlation Between HV Bancorp and Summit Bancshares
Can any of the company-specific risk be diversified away by investing in both HV Bancorp and Summit Bancshares 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 Summit Bancshares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HV Bancorp and Summit Bancshares, you can compare the effects of market volatilities on HV Bancorp and Summit Bancshares 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 Summit Bancshares. Check out your portfolio center. Please also check ongoing floating volatility patterns of HV Bancorp and Summit Bancshares.
Diversification Opportunities for HV Bancorp and Summit Bancshares
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HVBC and Summit is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding HV Bancorp and Summit Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Bancshares 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 Summit Bancshares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Bancshares has no effect on the direction of HV Bancorp i.e., HV Bancorp and Summit Bancshares go up and down completely randomly.
Pair Corralation between HV Bancorp and Summit Bancshares
If you would invest 4,313 in Summit Bancshares on September 1, 2024 and sell it today you would earn a total of 74.00 from holding Summit Bancshares or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
HV Bancorp vs. Summit Bancshares
Performance |
| Timeline |
| HV Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Summit Bancshares |
HV Bancorp and Summit Bancshares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HV Bancorp and Summit Bancshares
The main advantage of trading using opposite HV Bancorp and Summit Bancshares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HV Bancorp position performs unexpectedly, Summit Bancshares 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 Summit Bancshares will offset losses from the drop in Summit Bancshares' 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 |
| Summit Bancshares vs. Bank Mandiri Persero | Summit Bancshares vs. Piraeus Bank SA | Summit Bancshares vs. Kasikornbank Public Co | Summit Bancshares vs. Turkiye Garanti Bankasi |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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